Business & Investment

18% in 3 days, 450% from March.This strain has an agape staring at D-Street

The Tata Group shares have shown unprecedented interest among investors over the past year as the world has become accustomed to using more technology in everyday life. Inventory for this period has already tripled.

Following the quarterly results reported earlier this week, shares rose another 18% in just three days. As a result, the stock price jumped five times from the March low.

We are talking about Tataerkushi.

The question is how much can we recover in the future? Analysts at Dalal Street seem to agree that stock prices are currently overvalued and may actually start to fall. In addition, fundamentals remain strong, which could be an opportunity for investors to add shares to their portfolio.

“Note that the stock has already reported a significant rise in the last six months, but Tata Elxsi is” a must-have “in the portfolio, so the company is consistently its. Proving the guts, it needs to be added to all the major dips. “Dalal & Broacha said in a memo.

Equities trade at 52x earnings, while peers L & T Tech Services and OFSS trade at 41x and 17x, respectively.

In the December quarter, the company reported profit growth of nearly 40%, with revenue up nearly 13% year-on-year. Growth was driven by the company’s largest division, Embedded Product Design (EPD), and Industrial Design and Visualization (IDV), which contributed 9% of total revenue.

Management said the company “strengthens confidence in its strong cross-market and cross-industry trading pipeline and welcomes the fourth quarter and the New Year.”

Ayush Rathi, an analyst at Narnolia Financial Advisors, is positive about equities as a transport sector improvement with the closing of some strong deals amid the recovery of the automotive market.

“Management expects margins to range from 22 to 24 percent in 2009. A strong cross-regional and vehicle-based trading pipeline and a significant number of large-scale trades provide positive growth momentum. “It shows,” said Rathi.

The fate of Tataerkushi was once tied to JLR’s performance. But in the last few years, it has added more clients, leading to double-digit revenue growth, and then its share has recovered. The company is confident in its future growth.

But not everyone is convinced.

“In the medium to long term, automotive OEMs will partner with a few OEMs that may even take ownership of the software to pool their R & D budget. Tata Elxsi earns 65% of vertical automotive revenue from Tier I vendors. This could impact Tata Elxsi as the business moves from Tier I suppliers to OEMs, “said Soumitra Chatterjee of Spark Capital.

He has a “sell” valuation of shares with a target price of Rs 1,650.

18% in 3 days, 450% from March.This strain has an agape staring at D-Street 18% in 3 days, 450% from March.This strain has an agape staring at D-Street

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