Tata Elxsi saw its shares surge by 5% in early trading on Monday after the company posted impressive Q4 results and announced a hefty ₹70 per share dividend for FY24, its highest-ever payout.
The engineering and design services company reported a 26% year-on-year rise in net profit, coming in at ₹201.5 crore for the fourth quarter. Revenue also saw steady growth, rising 8.1% to ₹905.9 crore compared to the same period last year.
In addition to the solid numbers, Tata Elxsi’s board declared a final dividend of ₹70 per equity share, which now awaits shareholder approval at the upcoming Annual General Meeting. This is a step up from last year’s dividend of ₹60.60, reflecting the company’s continued focus on rewarding investors.
The company also maintained a healthy EBITDA margin of 28.8%, signaling strong operational performance despite a challenging macro environment.
However, not all analysts are fully bullish. While they acknowledged the company’s strong fundamentals, concerns over high valuations prompted Morgan Stanley to revise its target price down from ₹7,300 to ₹6,860. JP Morgan also trimmed its price target from ₹6,000 to ₹5,800.
Despite this, the market responded positively, with Tata Elxsi’s stock climbing sharply on the back of the results and dividend news.
