Shares of this Tata Group multibagger are rallying hard as it delivers excellent Q1 results

The company recorded a staggering 62.92 per cent increase in its net profit

In the last couple of years, the stock has delivered mutlibagger returns for its shareholders, appreciating from Rs 892 on July 15, 2020, to Rs 8065 on July 15, 2022.

The company we are talking about is Tata Elxsi, which belongs to S&P BSE group ‘A’ and has a market capitalization of Rs 50,118 crore. 

On July 15, at 2:08 pm, the shares of Tata Elxsi Ltd are trading at Rs 8065, up 3.42 per cent for the day. The stock is in strong momentum as the company delivered its Q1 results yesterday. 

The company reported Q1 revenue of Rs 726 crore, a YOY and QOQ growth of 30 per cent and 6.45 per cent, respectively. The Q1 net profit stood at Rs 184.72, as against Rs 113.38 crore in Q1 of last fiscal, showcasing a significant YOY growth of 62.92 per cent. 

The historical 10-year revenue and profit growth numbers also remain attractive for the company, recorded at 17 per cent and 32 per cent, respectively. 

Tata Elxsi is a multinational design and technology services company that develops products and software for clients in a variety of sectors, including automotive, broadcast, healthcare, and telecom. 

The company has an ROE and ROCE of 37.2 per cent and 47.7 per cent, respectively. The shares of Tata Elxsi are trading at a PE multiple of 86x. Talking about the holding pattern, 43.92 per cent is held by the promoters, while FIIs and DIIs together hold 19.38 per cent, and the rest is owned by non-institutional investors. 

On July 15, the stock opened at Rs 7940 and so far, the stock made an intraday high and low of Rs 8119 and Rs 7870, respectively.