Tata Elxsi shares fall the most in 39 weeks after Q1 profit misses estimates

Shares of Tata Elxsi Ltd. declined the most in 39 weeks on Tuesday after its first-quarter profit missed analysts’ estimates.

The company’s net profit fell 6% over the previous three months to Rs 189 crore in the June quarter, according to an exchange filing on Monday. That compares with the Rs 201.3-crore consensus estimate of analysts tracked by Bloomberg.

Tata Elxsi Q1 FY24 highlights (Quarter-On-Quarter)

• Revenue up 1.5% to Rs 850 crore (Bloomberg estimate: Rs 878 crore).

• Ebitda up 0.7% at Rs 251.46 crore (Bloomberg estimate: Rs 253.45 crore).

• Ebitda margin: 29.58% versus 29.79% (Bloomberg estimate: 28.9%).

• Net Profit fell 6% to Rs 189 crore. (Bloomberg estimate: Rs 201.3 crore).

Shares of the company fell as much as 4.85% intraday, the most since Oct. 18, 2022, before trading 0.99% lower as of 09:57 a.m. This compares with a 0.29% gain in the benchmark Nifty 50.

The total traded quantity so far in the day stood at 4.5 times the 30-day average volume. The relative strength index stands at 55.03

Of the seven analysts tracking the stock, two maintain a ‘buy’ and five recommend ‘hold’, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 11.1%. Bloomberg Quint