Tata Elxsi shares surge 7 per cent as FPIs hike stake in December quarter

The shares of Tata Elxsi were trading up by 7 per cent on Monday in an otherwise down market, after the foreign portfolio investors (FPIs) increased their holding in the company by nearly one per cent in the quarter ended December 2020. 

According to the Q3FY21 shareholding pattern filed by the company, FPIs have increased their holding in the company by 0.87 per cent to 12.62 per cent from 11.75 per cent at the end of September 2020 quarter (Q2FY21). FPIs held a 10.54 per cent stake in the company in June 2020 as per the shareholding pattern data. 

Meanwhile, the company reported strong Q3 numbers last week with a double-digit QoQ revenue growth and industry-leading operating margins. The revenues grew by 10.09 per cent QoQ and 12.7 per cent YoY to Rs 477.1 crore, led by growth in transportation, broadcast & communication as well as the healthcare segment. The bottom line of the company grew by 33.3 per cent QoQ and 39.5 per cent YoY to Rs 105 crore during the quarter. Looking ahead, the company is expected to report strong numbers, owing to multiyear large deals win and ramp-up of previous deals. 

In the past month, the stock has rallied 53.2 per cent as against a 3.61 per cent rise in S&P BSE Sensex. On Monday around noon, its stock was trading at Rs 2,518.90 per share, up by 6.27 per cent or Rs 148.40 per share as against a 0.78 per cent decline in the benchmark index. The 52-week high is recorded at Rs 2,576.40 while its 52-week low is recorded at Rs 501.