This multibagger software company stock has appreciated 11 times in two years!

If an investor had put Rs 1 lakh into this stock two years ago, that money would now be worth Rs 11 lakh.

Tata Elxsi Ltd offers a full range of services, including research and strategy, electronics and mechanical design, and software development. Over the last year, the company has delivered investors a fantastic return of 160.72 per cent. 

Despite the global economy being wracked by the Covid-19 outbreak, the Indian stock market has performed admirably over the previous two years. In India, several stocks have entered the list of multibagger stocks. Tata Elxsi is an example of a multibagger IT stock. This software company's stock has appreciated by roughly 11 times in the last two years, from around 639 to 7045 apiece. 

If an investor had put Rs 1 lakh into this multibagger stock a year ago and kept it invested in Tata Elxsi shares throughout that time, his or her money would now be worth Rs 2.60 lakh. Similarly, if an investor had put Rs 1 lakh into this stock two years ago, that money would now be worth Rs 11 lakh. 

Recently, the company has reported strong Q3 results. In Q3FY22, revenue grew by 33.18 per cent YoY to Rs 635.41 crore from Rs 477.1 crore in Q3FY21. On a sequential basis, the top-line was up by 6.73 per cent. PBIDT (Ex OI) was reported at Rs 209.1 crore, up by 45.6 per cent as compared to the year-ago period and the corresponding margin was reported at 32.91 per cent, expanding by 281 basis points YoY. PAT was reported at Rs 150.95 crore, up by 43.49 per cent from Rs 105.2 crore in the same quarter for the previous fiscal year. The PAT margin stood at 23.76 per cent in Q3FY22 expanding from 22.05 per cent in Q3FY21. 

Tata Elxsi and Renesas Electronics Corp. are teaming up to build a state-of-the-art design centre in Bangalore that will focus on electric vehicle solutions (EVs). Tata Elxsi and Renesas will collaborate to build reference designs and solution accelerators for important EV subsystems including battery management systems and motor control units, among others, by bringing their deep domain expertise, intellectual property, and assets to the NEVIC. With the EV market, particularly the light EV segment, at a crossroads, the firms hope to provide critical enablers for the market, beginning in India and spreading globally, in order to reduce development time and effort. 

At 10:45 am on Friday, the stock of Tata Elxsi Ltd was seen trading at Rs 7,100, down by 1.33 per cent or Rs 93.35 per share. The 52-week high of the scrip is recorded at Rs 7,949 and the 52-week low at Rs 6,922.6 on the BSE.