Avendus has retained a Sell rating on Tata Elxsi, setting a target price of ₹4,690 per share, compared to the current market price of ₹5,580.
The brokerage has reduced its FY26 and FY27 revenue estimates by about 2%, citing a likely moderation in growth within the company’s key verticals. It expects FY26 performance to be led by non-transportation segments, while a broader recovery is projected in FY27 on a lower base.
Avendus also lowered its FY26 EBITDA margin estimate by 77 basis points to 22.7%, anticipating a 340-bps contraction in FY26, followed by a 180-bps improvement in FY27 as demand normalises.
The note adds that large deal wins in Q4FY25 and Q1FY26 are expected to aid growth momentum. Additional revenue contributions could come from the rail, off-highway, aerospace, and defence segments, providing incremental upside over the medium term.
Current Market Price (CMP): ₹5,580
Target Price: ₹4,690
Rating: Sell
Disclaimer: This article is based on brokerage research and does not constitute investment advice. Investors should consult certified financial experts before taking any investment decisions.
