Tata Elxsi (TATAELXSI)

FairStock Score: 56/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Tata Elxsi as a Graham-style analyst: first the business, then the price. The business quality is real. Return on equity is 20.30%, return on capital employed 36.26%, debt/equity is only 0.05, and the Altman Z-Score of 7.26 plus Piotroski F-Score of 7/9 suggest a financially sturdy operation. It produced ₹114 Cr of free cash flow, pays a 1.99% dividend yield, and promoters own 43.90%. Over five years revenue compounded at 16.95%; latest quarter sales were ₹953 Cr and net profit ₹109 Cr, with sales growth 14.50% and profit growth 18.10%. That looks like a steady, capital-efficient compounder—what I would call a stalwart—rather than a fast-moving fad. The high ROCE and low debt hint at a business with some pricing power and discipline, though a true moat needs evidence beyond these figures. The problem is valuation. At ₹3772.70, market cap ₹23,504 Cr, the stock trades at P/E 35.84 and P/B 7.73, while book value is ₹488.20. The Graham Number is only ₹981.08, giving a stated margin of safety of -360%. DCF intrinsic value is ₹225.87, also far below the market price, and EV/EBITDA is -124.72, which is not a comforting number to lean on. FairStock score 56/100 (STEADY) captures the tension: good business, full price. Growth of 14.50% sales and 18.10% profits is respectable, but it does not obviously justify such a large premium to conservative intrinsic value. As Buffett might say, a wonderful business can still be a poor investment if bought too dear. I would wait for either faster growth or a much lower price before seeking a margin of safety.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer