Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateUploadPipelinePE CyclesBrainAbout

Data updated weekly. Not financial advice.

Sector Alpha
  1. Home
  2. /Deep Value
  3. /IT - ER&D
  4. /Tata Elxsi Ltd
MomentumDeep Value

Tata Elxsi Ltd: Is It a Deep Value Opportunity?

AverageAccelerating

As of Apr 24, 2026, Tata Elxsi Ltd (IT - ER&D) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -31%.

Tata Elxsi Ltd Key Facts

PE Ratio
255.0x
Market Cap
₹25,974 Cr
Value Score
45/100
PAT Growth YoY
+36%
Revenue Growth YoY
+9%
OPM
20.0%
PE: Mid ContractionStrong Opportunity

What's Happening

💎PE falling while earnings hold — value emerging
🌐FII stake decreased 1.1% this quarter
🏛️DII accumulation — stake up 3.0%

Key Numbers

PAT Growth YoY
+36%
Stable
Revenue YoY
+9%
Stable
Operating Margin
20.0%
-200 bps YoY
PE Ratio
255.0
PEG Ratio
3.68
Current Price
₹4,169
Dividend Yield
1.79%
3Y PAT CAGR
+43%
Market Cap
26.1K Cr
Valuation
N/A

How Fast Is Tata Elxsi Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+9%+16%Stable
PAT (Net Profit)+36%+43%Stable
OPM20.0%-200 bpsStable
← Back to IT - ER&DAll Deep Value SectorsDashboard

Frequently Asked Questions: Tata Elxsi Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What is Tata Elxsi Ltd's deep value score?

Tata Elxsi Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components

  • Earnings Score: 27/40 — measures PAT growth momentum across quarters
  • Underperformance Score: 17/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
  • Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)

Is Tata Elxsi Ltd fundamentally improving?

Tata Elxsi Ltd's quarterly profit (PAT) growth trajectory

  • Latest Quarter PAT Growth (QoQ): +102%
  • Previous Quarter PAT Growth (QoQ): -30%
  • 2 Quarters Ago PAT Growth (QoQ): +7%
  • PAT Acceleration: +47.6pp (profits are accelerating)
  • 1 consecutive quarters of positive PAT growth

Why is Tata Elxsi Ltd underperforming despite good earnings?

Tata Elxsi Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

  • 1-Year Return vs Nifty 500: -31%
  • 6-Month Return vs Nifty 500: -20%
  • 3-Month Return vs Nifty 500: -22%
  • Yet average quarterly PAT growth is +27% — earnings are improving
  • The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

What is the earnings momentum for Tata Elxsi Ltd?

Tata Elxsi Ltd's earnings momentum is Accelerating — profit growth is speeding up.

  • PAT QoQ progression: +7% → -30% → +102% (2Q ago → 1Q ago → latest)
  • Acceleration: +47.6pp
  • PAT YoY Growth: +36%

Is Tata Elxsi Ltd undervalued?

Tata Elxsi Ltd's valuation metrics

  • Price-to-Earnings (PE): 41.6x
  • Price-to-Book (PB): 8.6x
  • PEG Ratio: 3.7x

What are the revenue and margin trends for Tata Elxsi Ltd?

Tata Elxsi Ltd's revenue and margin trends

  • Latest Quarter Revenue Growth (QoQ): +4%
  • Average Quarterly Revenue Growth: +4%
  • Revenue Acceleration: +0.7pp
  • Latest OPM Change: +1.3pp (margins expanding)
  • Average OPM Change: +1.2pp
  • Revenue YoY: +9%

What is Tata Elxsi Ltd's trailing twelve month (TTM) performance?

Tata Elxsi Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹103 Cr
  • TTM PAT Growth: +41.1% YoY
  • TTM Revenue: ₹849 Cr
  • TTM Revenue Growth: +9.6% YoY
  • TTM Operating Margin: 20.8%

What sector does Tata Elxsi Ltd belong to?

Tata Elxsi Ltd key facts

  • Sector: IT - ER&D
  • Market Cap: ₹26.1K Cr
  • Rank in IT - ER&D: #1 by value score
  • Overall rank among all deep value stocks: #41

Is Tata Elxsi Ltd a good deep value opportunity to study?

Tata Elxsi Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.

  • Value Score: 45/100 (Average)
  • Earnings: Accelerating
  • 1Y Underperformance: -31% vs Nifty 500

What is the bull and bear case for Tata Elxsi Ltd?

Research Signals (Bull Case)

  • Earnings accelerating — profit growth speeding up
  • Revenue growth also accelerating
  • Operating margins expanding

Risk Factors (Bear Case)

  • Significant underperformance (-31% vs Nifty 1Y)

How does the IT - ER&D sector look for deep value?

IT - ER&D deep value sector overview

  • 1 deep value stocks in this sector
  • Average value score: 45/100
  • Avg PAT acceleration: +47.6pp
  • Top pick: Tata Elxsi Ltd

What is deep value investing?

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

How is the deep value score calculated?

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.

The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.