Tata Elxsi Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Tata Elxsi Ltd trades at ₹3,503, in a downtrend and 50 weeks into that stage. That is −25.1% against its own 200-day average. It sits at 0% of a 52-week range of ₹3,503 to ₹5,723. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (29 weeks and counting).

Today the stock is in a downtrend — week 50 of stage 4, confirmed. At ₹3,503 it trades −25.1% versus its 200-day average and sits at 0% of its 52-week range (₹3,503–₹5,723).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +259% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (29 weeks and counting; last ahead the week of 2026-02-06) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 50th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Tata Elxsi Ltd trades at 216.0× P/E, mid-range by its own standards (50th percentile). Its long-run median P/E is 219.0×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 216.0× is mid-range by its own standards (50th percentile), against a long-run median of 219.0× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +41.2% against a −43.2% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −4.0%/yr price move, ~+0.0%/yr came from earnings growth and ~−4.0 pp from the multiple (compressing); over 10y, of the +15.7%/yr price move, ~+0.0%/yr came from earnings growth and ~+15.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Tata Elxsi Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE lifting at 60.0% — the per-curve reads carry the story. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

49.1/100 — rank 4 of 7 in IT - ER&D · 80% evidence confidence

Tata Elxsi Ltd scores 49.1 out of 100 against the 7 companies it is compared with in IT - ER&D, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19 + 20.1 + 8.5 + 1.5 = 49.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Tata Elxsi Ltd reported ₹231 Cr of revenue in the Mar 15 quarter, +9.0% year on year. That is the 9th straight quarter of year-on-year growth. Over 7 years it has compounded at 11.3% a year. The last full year, FY15, came in at ₹849 Cr. The last four reported quarters add to ₹849 Cr.

Tata Elxsi Ltd reported ₹231 Cr of revenue in the Mar 15 quarter, +9.0% year on year. That is the 9th straight quarter of year-on-year growth. Over 7 years it has compounded at 11.3% a year. The last full year, FY15, came in at ₹849 Cr. The last four reported quarters add to ₹849 Cr.

FY15 revenue came in at ₹849 Cr (+9.5% on the year), capping 7 years at 11.3% compound. The latest quarter (Mar 15) printed ₹231 Cr, +9.0% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.6% growth against the decade's 11.3% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.5% over the last 4 quarters against +16.9%/yr over the last 8 — rolling over; TTM profit +41.1% vs +116.4%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 20.0% this quarter (−2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Tata Elxsi Ltd's operating margin is 20.0% in the Mar 15 quarter, −2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 8 fiscal years the operating margin has ranged 11.0% to 21.0%. The current quarter sits inside that band.

Tata Elxsi Ltd's operating margin is 20.0% in the Mar 15 quarter, −2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 8 fiscal years the operating margin has ranged 11.0% to 21.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 20.0%, −2.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 11.0%–21.0%, and FY15's 21.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.2 pp year on year while gross margin went −0.6 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins slipped — did that reach the bottom line? Next: profit +36.4% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Tata Elxsi Ltd earned ₹30.0 Cr of net profit in the Mar 15 quarter, +36.4% year on year. It is the 8th consecutive quarter of growth. Full-year FY15 profit was ₹102 Cr. The 7-year compound rate is 9.8%. That is 13.0% of the quarter's revenue. The same quarter a year earlier earned ₹22.0 Cr.

Tata Elxsi Ltd earned ₹30.0 Cr of net profit in the Mar 15 quarter, +36.4% year on year. It is the 8th consecutive quarter of growth. Full-year FY15 profit was ₹102 Cr. The 7-year compound rate is 9.8%. That is 13.0% of the quarter's revenue. The same quarter a year earlier earned ₹22.0 Cr.

Mar 15 profit was ₹30.0 Cr, +36.4% year on year — the 8th consecutive quarter of growth. On the full year, FY15 printed ₹102 Cr (+41.7%), and the 7-year compound rate is 9.8%.

Why profit moved: revenue contributed +9.0% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +54.3% vs revenue +9.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 159% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 159% of Tata Elxsi Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY15 that was ₹143 Cr of operating cash against ₹102 Cr of profit. After ₹17.0 Cr of capital spending, ₹126 Cr was left as free cash.

FY15: operating cash of ₹143 Cr against reported profit of ₹102 Cr, leaving free cash of ₹126 Cr after ₹17.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 159% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 159%: the cash cycle stretched 491 days between FY10 and FY15 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 66-day cycle and ₹76.0 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Tata Elxsi Ltd's cash conversion cycle runs 66 days in FY15, up from −425 days in FY10. Capital spending ran ₹76.0 Cr over the last 3 years. At FY15 sales of ₹849 Cr each day of that cycle holds about ₹2.3 Cr, so roughly ₹154 Cr sits inside the business at any moment.

FY15: debtors at 66 days (an asset-light business — no inventory to speak of) — for a full cycle of 66 days, looser than FY10's −425.

In money terms: at FY15 sales of ₹849 Cr, each day of the cycle holds about ₹2.3 Cr — so the 66-day loop keeps roughly ₹154 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹76.0 Cr over the last 3 fiscal years against ₹85.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹3.0 Cr (FY15) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 60% and the ROIC − WACC spread is +27.5 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Tata Elxsi Ltd earns a ROCE of 60% in FY15. That is up from a trough of 16% in FY11. Return on invested capital clears the cost of that capital by +27.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 12.0% net margin on 1.82× asset turns.

FY15 ROCE is 60%, recovered from a FY11 trough of 16% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY15): 12.0% net margin × 1.82× asset turns × 1.65× balance-sheet leverage ≈ 36.0% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 39.5% − 12.0% = a +27.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Tata Elxsi Ltd carries total debt of ₹162 Cr against shareholder equity of ₹3,041 Cr as of Jun 26, a debt-to-equity of 0.05 — effectively unlevered. On the annual view that ratio went from 0.09 in FY22 to 0.05 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹162 Cr against shareholder equity of ₹3,041 Cr — a debt-to-equity of 0.05. On the annual view, debt-to-equity went from 0.09 (FY22) to 0.05 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 4.8 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 4.8 points of Tata Elxsi Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 11.0% of the company. Foreign institutions moved −3.8 points over the same window, to 9.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +4.8 points over 8 quarters to 11.0%; Foreign institutions: −3.8 points over 8 quarters to 9.8%; Promoters: +0.0 points over 8 quarters to 43.9%.

Why the register moved: rotation — foreign institutions −3.8 points against domestic institutions +4.8 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Tata Elxsi Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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