Morgan Stanley on Tata Elxsi share
- Rating: Underweight (Sell)
- Target Price: ₹6,000 (revised from ₹6,500)
- Key Takeaways:
- F3QFY25 missed expectations.
- Weakness in European transportation continues, and significant recovery in Media and Healthcare segments remains elusive.
- Limited growth visibility and potential downward revisions to estimates.
- High valuation could lead to continued underperformance.
JPMorgan on Tata Elxsi share
- Rating: Underweight (Sell)
- Target Price: ₹5,400 (revised from ₹5,700)
- Key Takeaways:
- Second consecutive quarter of sharp misses on revenue and margins.
- Flat constant currency (CC) quarter-on-quarter revenue growth fell 100bps below expectations.
- EBIT margins declined 160bps QoQ, 180bps below JPM estimates.
- Earnings estimates cut by 3-5% for FY26-27E due to weaker-than-expected results.
Comparison of Analyst Ratings
| Brokerage | Rating | Target Price | CMP | Upside/Downside (%) |
|---|---|---|---|---|
| Morgan Stanley | Underweight | ₹6,000 | ₹6,451.95 | -7% |
| JPMorgan | Underweight | ₹5,400 | ₹6,451.95 | -16% |
Both Morgan Stanley and JPMorgan maintain a Sell stance on Tata Elxsi due to its disappointing financial performance, weak growth visibility, and valuation concerns. Investors are advised to exercise caution, with both brokerages projecting significant downside from the current market price (CMP).
