Home Entertainment company Why Tata Elxsi share price is skyrocketing – explained

Why Tata Elxsi share price is skyrocketing – explained


Tata Elxsi share price hit its lifetime high in two successive sessions. Computer stock multibagger which has returned 235% to its shareholders over the past year, hit a new high on Friday and the rally continued on Monday, leading to a new high of 9,160 levels each on NSE. Over the past two trading sessions, this multibagger stock has jumped 18 percent (from 7610 to 9010 levels each on NSE).

According to stock experts, the Tata Group company has a diversified portfolio where it has an ambitious driverless car project in the automotive segment. Apart from this, it provides AI and digital learning services to world famous companies like Amazon, Google, Siemens, Audi, etc. It works on high-growth sectors like entertainment, which is expected to see a high volume of unlock-themed business. They said the market is bullish on Tata Elxsi share price due to these factors which led to a sudden rise in this multibagger stock.

Speaking on the reasons behind the rally in Tata Elxsi share price; Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Tata Elxsi is implementing an ambitious driverless car project and also providing its services and expertise in the electric vehicle segment. This is the immediate reason for the sudden appreciation of the multibagger stock over the past few sessions. Other than that, the company reported improving margins, a strong backlog in Q3, which is expected to improve further on the unlock theme. -19 cases. The company offers its services and expertise to various companies in the industry such as Amazon, Google, Netflix, Audi, Siemens, etc., which is also a testament to the strong business model it has developed over time. »

According to Edelweiss’ alternative and quantitative research report, “India’s weighting in the widely followed MSCI Emerging Markets (EM) Index has climbed to around 12.3% now, from around 8.1% at the end of the year. of October 2020. The two factors that led to new inclusions and a slight increase in the weightings of existing Indian constituents are: i) the new Foreign Ownership Limit (FOL) regime taking effect at the review of 20 November; and (ii) the strong outperformance of domestic equities relative to other emerging market peers.” Edelweiss Research added that the market cap deadline could be between April 18-29, 2022 and the announcement could be made on May 13, while the rebalancing could be effective from May 31.

Tata Elxsi share price history

Over the past month, this multibagger stock has jumped around 6430 to 9010 levels each, registering a rise of about 40% while in the last 6 months, the stock of the Tata group has increased by almost 60%. Similarly, since the start of the year, this stock of the multibagger group Tata has generated more than 50% return for its shareholders while in the last year it has jumped around 235% in the post rally. -Covid.

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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