Overall Fundamental outlook

Business Operations:

Sector: Technology
Industry: Software - Application

Tata Elxsi Limited engages in the provision of product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. The company operates through two segments, Systems Integration and Support, and Software Development and Services. It offers AIVA, an AI-based video analytics platform for content curation and object action event meta-tagging; AI DMS, a driver intelligence service solution; ICX, a SaaS-based solution for automating, monitoring, and managing CPEs; SymanTEx, a digital personal assistant service solution; and TESA, an AI-enabled smart annotation platform for development of autonomous and intelligent systems. The company also provides QoEtient, a stream performance optimization platform for OTT service providers; TEPlay, an OTT/IPTV platform, for delivering video experiences; and Neuron, an autonomous network platform for telco operators. In addition, it offers TETHER, an IoT platform, for providing digital and connected features; eMobility HILS, a lab-based framework for validation of EV systems; RoboTaxi, a concept demonstrator vehicle; V2x Emulator, a customizable virtual simulation test solution for asserting road safety in a V2X environment; and Virtual-DRIVE, an IP solution, that provides a lab-based environment validation of autonomous driving and ADAS algorithms. Further, the company provides TEDREG, a regulatory intelligence platform, to aggregate and organize the latest regulatory updates from regulatory bodies; Digital Health Platform, a customizable platform for telehealth services; TEngage, a digital health platform; and TEcare, a digital therapeutics platform. It offers its solutions to automotive, broadcast and media, communications, off-highway equipment, healthcare and life sciences, appliances and consumer electronics, rail, semiconductor, and aerospace industries. The company has strategic partnership with CSIR-National Aerospace Laboratories to drive innovation in emerging areas, such as unmanned aerial vehicles (UAVs), urban air mobility (UAM), and electric vertical take-off and landing (eVTOL) aircraft. The company was incorporated in 1989 and is headquartered in Bengaluru, India.

Revenue projections:

Revenue projections for TATAELXSI
Revenue projections for TATAELXSI

TATAELXSI's revenue is forecasted to dip below last year's figures, raising concerns for investors who are typically wary of declining financial performance. Such drops can directly affect the company's bottom line, potentially leading to a decrease in overall profitability, making investors more cautious in their decisions.

Financial Ratios:

currentRatio 5.28100
forwardPE 36.56939
debtToEquity 6.72400
earningsGrowth -0.12400
revenueGrowth -0.01000
grossMargins 0.38692
operatingMargins 0.20143
trailingEps 126.04000
forwardEps 0.00000

With a current ratio 5.281, TATAELXSI demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
Tata Elxsi Limited's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
With positive gross and operating margins, TATAELXSI's profitability is evident. These metrics suggest the company is efficiently managing its expenses while maintaining strong revenue, highlighting a solid financial foundation.

Price projections:

Price projections for TATAELXSI
Price projections for TATAELXSI

Price projections for TATAELXSI have been revised down over time, reflecting a less optimistic outlook. Analysts appear to be adjusting their expectations, signaling concerns about the company's ability to sustain its previous growth levels.

Recommendation changes over time:

Recommendations trend for TATAELXSI
Recommendations trend for TATAELXSI


The sell bias toward Tata Elxsi Limited from analysts suggests caution, but investors are encouraged to consult a variety of market indicators before making decisions. This broader perspective will help mitigate risks and provide a clearer understanding of Tata Elxsi Limited's potential in the current market.