Tata Elxsi – Q3 FY20 (Audited –Cons)
Total revenue from operations at 423.4 Cr
407.00 Cr (3.92%) YoY | 385.83 Cr (9.89%) QoQ
Nine Months ending revenue: 1,171 Cr Vs. 1,192 Cr (-1.75%)
Net Profit of 75.42 Cr
65.99 Cr (14.21%) YoY 49.80 Cr (51.42%) QoQ
Nine Months ending Net profit: 174 Cr Vs. 219 Cr (-20.13%)
EPS (in Rs.) 12.11
10.60 YoY | 8.00 QoQ
Nine Months ending EPS: 27.94 Vs. 35.11
View: Result is overall good & fair. YoY revenue increased marginally but bottom line and margin improved in this quarter.
**Business Updates & Highlights**:
Q3FY20 EBITDA is around INR 114.7 Cr Vs. 100.6 Cr in Q3FY19. 9 month ending FY20 EBITDA is around INR 279.3 Cr Vs. 345 Cr in FY19.
**Financial**:
ROE and ROCE is around 25.2% and 51% respectively and book value per share is around INR 150 per share and share is currently trading at 5.9x of it book value. Company is currently trading at annualized PE of around 23 which is average as per Industry benchmark. Promoter holding in the company is around 44.5% which is good and stable, FIIs, mutual fund and insurance cos hold around 7.7%, 2.1% and 1.9% in the company. Company is virtually debt free. Company is continuously paying good dividend and last dividend paid was INR 13.5 per share.
**View**: Share price high 1010 (52 week) and now 882, share has been good recovery for past few months and low 600 to now 900 almost 50% recovery. Tata Elxsi business is product design and engineering services to the consumer electronics, communications & transportation industries and systems integration and support services for enterprise customers. The good thing is company is well renowned Tata Group and continuously outperform for past several years. Share has strongly comeback.
Long term investor should continue to add on dip and short term outlook is also good.**
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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