Kotak Institutional Equities has maintained a Sell rating on Tata Elxsi, assigning a target price of ₹4,000 per share, highlighting limited upside from current levels.
The brokerage said the company delivered an in-line quarter with a slight revenue beat, though profitability remained weak. Growth during the period was supported by the ramp-up of media and communications deals, while the Jaguar Land Rover (JLR) cybersecurity issue had only a modest impact on performance.
Kotak expects automotive deal momentum to aid near-term growth; however, continued weakness in the media and communications vertical is likely to weigh on overall performance. The brokerage projects a 5.4% constant currency (CC) revenue decline in FY26, despite expectations of a recovery in the second half of FY26.
Target Price: ₹4,000 | Rating: Sell
Disclaimer: This article is based on brokerage research and does not constitute investment advice. Investors are advised to consult certified financial experts before making investment decisions.
