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Tata Elxsi Limited (500408) fair value: what the stock is really worth

As of Oct 1, 2026: fair value of Tata Elxsi Limited ₹3,542, price ₹3,099, upside +14.3%, quality 69 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
  3. Add to watchlist

Technology · IN · ISIN INE670A01012

TE Thin data Sep 24, 2026

Tata Elxsi Limited

500408 · BSE

UndervaluedQuality growthThe stock appears undervalued with acceptable quality.

✓Fair value ₹3,542 · Undervalued (+14.3%)
✓Quality 69/100
✓Healthy Growth (revenue 5y +18.3 %/yr)
✓Solidly profitable · 18.0% net margin (TTM)
✓0.5% dividend yield · Well covered
✓Wide moat 87/100
!Evidence only low, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

₹10,201 ₹3,099 Fair Value ₹3,542 May 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range ₹3,099 – ₹10,201 · fair‑value band ₹1,991 – ₹4,421 · the ₹3,099 price screens below the ₹3,542 fair value. Dashed = 300-day average. As of Sep 24, 2026.

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Company profile

Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. It operates through two segments, Software Development and Services; and Systems Integration and Support.

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Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. It operates through two segments, Software Development and Services; and Systems Integration and Support. The company offers technology consulting, new product design, development, and testing services for broadcast, consumer electronics, healthcare, telecom, and transportation industries; and electronics, software development, and system design services for automotive and aerospace industries. It also provides animation and visual effects services in the areas of 3D stereoscopy, CG animation, visual effects, and gaming for television service and commercials, custom content development, logos and graphics, and films. In addition, the company offers services in collecting, managing, visualizing, and analyzing data to provide actionable insights combined with predictive/prescriptive analytics; and industrial design services in the areas of consumer insight, branding, industrial design, visual design and merchandising, design engineering, and manufacturing support. Further, it offers design, branding, and mechanical detailing for devices, sensors, and gateways; device, sensor, gateway hardware, system, and application development services; communications integration and testing services; connectivity, device management, big data, network management, analysis and prediction model, and hosted services; and application service/workflow, and user experience and UI design services, as well as mobile/Web-based app development services. Additionally, the company implements and integrates systems and solutions for computing, CAD/CAM/CAE/PLM, broadcast, virtual reality, storage, and disaster recovery, as well as provides professional services for the maintenance and support of IT infrastructure. Tata Elxsi Limited was incorporated in 1989 and is headquartered in Bengaluru, India.

Stock analysis

Tata Elxsi Limited (500408) currently trades at ₹3,099, while our model-based Fair Value estimate is ₹3,542, implying the stock looks roughly 12.5% undervalued today.

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Valuation

Bull case: the Growth Earnings group reads highest at a median of ₹3,180 per share, and 7 of the 26 models we run sit above the ₹3,099 price.

Bear case: the Economic Profit group reads lowest at ₹872.31, and 19 of the 26 models stay below the price. Evidence for this calculation is low.

Scenario range: ₹1,991 (bear) to ₹4,421 (bull), the price of ₹3,099 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 69/100 (solid quality), in the Technology sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Tata Elxsi Limited reported revenue of ₹37.3B in FY2025 versus ₹18.3B in FY2021, a compound +19.5%/yr. Reported net income was ₹7.8B in FY2025, compounding +20.8%/yr from FY2021.

Key figures

Market cap ₹94.0B (≈ $976M) · P/E ratio 30.3 · P/S ratio 6.37 · EPS (TTM) ₹49.02 · Dividend yield 0.5% · Net margin 21.0% · Return on equity 29.5% · Return on assets (EBIT) 29.3%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 62 out of 100 (medium confidence).

What moves the price

The share trades about 46% below its 52-week high and at its 52-week low, currently below its 200-day average.

For context, the median of 10 Technology peers we cover trades at −8% fair-value upside, at 14%, 500408 screens cheaper than that median.

Fair Value models

Bear ₹1,991 Fair Value ₹3,542 Bull ₹4,421
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (₹32.52 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF ₹1,469 ₹2,560 ₹4,551 75
Residual Income ₹676.74 ₹872.31 ₹1,454 74
Growth DCF ₹1,428 ₹2,405 ₹3,889 73
All 26 models by family
DCF Models
FCF DCF ₹1,469 ₹2,560 ₹4,551 75
Owner Earnings ₹1,610 ₹2,889 ₹4,994 71
5Y Revenue Exit ₹1,349 ₹2,414 ₹3,899 68
5Y EBITDA Exit ₹1,797 ₹3,387 ₹5,463 70
5Y P/E Exit ₹2,119 ₹4,085 ₹6,445 66
10Y Revenue Exit ₹1,335 ₹2,328 ₹3,932 62
10Y EBITDA Exit ₹1,651 ₹2,999 ₹5,190 63
10Y P/E Exit ₹1,851 ₹3,481 ₹5,980 59
Earnings-Based
Graham-Dodd ₹857.08 ₹4,710 ₹6,535 63
Lynch FV ₹1,311 ₹1,873 ₹2,435 61
PEG = 1.0 ₹1,311 ₹1,873 ₹2,435 57
EPV ₹1,013 ₹1,148 ₹1,261 70
Dividend Discount
Gordon GGM ₹543.85 ₹980.00 ₹1,349 68
DDM Multi-Stage ₹543.85 ₹895.20 ₹1,047 67
Multiples
P/E Multiple ₹2,647 ₹3,529 ₹4,411 63
P/S Multiple ₹1,607 ₹2,143 ₹2,678 58
P/B Multiple ₹1,607 ₹2,143 ₹2,678 55
EV/EBIT ₹2,531 ₹3,367 ₹4,203 63
EV/EBITDA ₹2,131 ₹2,834 ₹3,537 64
EV/Revenue ₹1,290 ₹1,834 ₹2,377 51
Asset-Based
NCAV (Graham) ₹229.62 ₹307.69 ₹459.24 51
Growth DCF
Growth DCF ₹1,428 ₹2,405 ₹3,889 73
Rev-Margin DCF ₹1,349 ₹2,380 ₹3,787 68
Economic Profit
Residual Income ₹676.74 ₹872.31 ₹1,454 74
ROIC Compounder ₹1,147 ₹1,471 ₹1,862 70
Growth Earnings
Growth-Adj P/E ₹2,226 ₹3,180 ₹4,134 67

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Quality Score breakdown

Overall quality 69/100

Of which business quality 69 · Market factors (momentum, volatility) 24

Profitability 91
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 9
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.3%
Start year 2020 (pandemic). Over 10 years: +15.9% a year
Revenue growth 11 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.4%
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+22.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+22.0%
Dividend (yield on the price)0.5%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 23%

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 685 stocks

Beats the industry median on 6/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 69 · Top 25%
Fair Value upside −33.9% · Below median
Profitability
Return on equity (TTM) 29.5% · Top 25%
Return on assets 18.7% · Top 25%
Net margin (TTM) 18.0% · Top 25%
Operating margin (TTM) 23.1% · Top 25%
Growth and dividend
Revenue growth 11.5% · Above median
Dividend yield (TTM) 0.5% · Bottom 25%

Valuation Multiplesvs Software - Application median · lower = cheaper

P/E (TTM) 30.3× · Pricier than median
P/B 3.29× · Pricier than median
P/S (TTM) 5.55× · Priciest 25%
EV/EBITDA 22.5× · Pricier than median

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
SAP SE SAP €186.74 €172.46 −8%
Salesforce, Inc CRM $229.57 $342.73 +49%
Shopify Inc SHOP $144.01 $64.36 −55%
ServiceNow, Inc NOW $134.01 $147.41 +10%
Uber Technologies, Inc UBER $69.36 $103.69 +49%
Snowflake Inc SNOW $330.31 $74.36 −77%
Automatic Data Processing, Inc ADP $261.80 $150.01 −43%
Adobe Inc ADBE $239.94 $454.04 +89%
Datadog, Inc DDOG $268.70 $32.52 −88%
Cadence Design Systems, Inc CDNS $326.70 $225.48 −31%

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Tata Elxsi Limited · Fair Value
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Cite: Fair Value Calculator (2026). "Tata Elxsi Limited Fair Value". https://www.fairvalue-calculator.com/stock/500408

Frequently asked questions

Is Tata Elxsi Limited (500408) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹3,542 versus a price of ₹3,099, about +14% upside (undervalued).
What is the fair value of 500408?
Our model-based fair value for Tata Elxsi Limited is ₹3,542 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹3,099.
What is the quality score of 500408?
Tata Elxsi Limited has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Tata Elxsi Limited (500408)?
Our model-based price target is the fair value of ₹3,542 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario ₹1,991, optimistic scenario ₹4,421. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Elxsi Limited stock forecast for 2026?
Our models put fair value at ₹3,542, about +14% upside versus a price of ₹3,099 (undervalued). Cautious scenario ₹1,991, optimistic scenario ₹4,421. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Elxsi Limited (500408)?
Tata Elxsi Limited reported trailing-twelve-month revenue of about ₹16.9B (latest available figure, as of Sep 24, 2026).
Does Tata Elxsi Limited pay a dividend?
Tata Elxsi Limited currently shows a dividend yield of about 0.53% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of Tata Elxsi Limited (500408)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Elxsi Limited it is ₹3,542 per share (as of Sep 24, 2026), against a price of ₹3,099. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Tata Elxsi Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 500408 trades below its calculated fair value: price ₹3,099, fair value ₹3,542, a gap of about +14% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 500408?
No. The price is what the market pays today (₹3,099); the fair value is what the company's own numbers justify (₹3,542). For Tata Elxsi Limited the two are ₹443.00 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Elxsi Limited worth?
The market values Tata Elxsi Limited at about ₹94.0B (market capitalisation, as of Sep 24, 2026). Per share that is ₹3,099; our models calculate a fair value of ₹3,542 per share.
What do the bullish and bearish scenarios say about 500408?
Our models span a range for Tata Elxsi Limited: cautious scenario ₹1,991, base ₹3,542, optimistic ₹4,421 per share (as of Sep 24, 2026, price ₹3,099). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 500408?
Tata Elxsi Limited trades at a price-to-earnings ratio of 30.3 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹3,542 is built from several models across several years. Other multiples: P/B 3.3, P/S 5.6, EV/EBITDA 22.5.
How solid is the balance sheet of Tata Elxsi Limited (500408)?
Balance-sheet figures for Tata Elxsi Limited (as of Sep 24, 2026): return on equity 29.5%. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is 500408 from its 52-week high?
Tata Elxsi Limited trades at ₹3,099, about 46% below its 52-week high of ₹5,748 and at the low of ₹3,099 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹3,542 is for.
Which stocks are comparable to Tata Elxsi Limited?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tata Elxsi Limited stock attractive at the current price?
The data as of Sep 24, 2026: price ₹3,099, calculated fair value ₹3,542 (+14%), Quality Score 69/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 500408 calculated?
We run Tata Elxsi Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹3,542, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Tata Elxsi Limited currently trades 13 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Tata Elxsi Limited (500408)?
The closing price on Oct 1, 2026 was ₹3,099. Our model-based fair value is ₹3,542, about +14% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Elxsi Limited right now?
A fairly wide model range (₹1,991 to ₹4,421) leaves room in how you read the outcome. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Key figures of Tata Elxsi Limited

How large is the market capitalisation of Tata Elxsi Limited (500408)?
The market capitalisation of Tata Elxsi Limited is ₹94.0B (≈ $976M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Tata Elxsi Limited (500408)?
The price-to-sales ratio of Tata Elxsi Limited is 6.37 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Tata Elxsi Limited (500408)?
Earnings per share at Tata Elxsi Limited are ₹49.02 (price ÷ EPS = P/E 30.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Elxsi Limited (500408)?
The dividend yield of Tata Elxsi Limited is 0.5% (payout 33.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Tata Elxsi Limited (500408)?
The net margin of Tata Elxsi Limited is 21.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Tata Elxsi Limited (500408)?
The return on equity (ROE) of Tata Elxsi Limited is 29.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Tata Elxsi Limited (500408)?
On an EBIT basis the return on assets of Tata Elxsi Limited is 29.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Tata Elxsi Limited (500408)?
The operating margin of Tata Elxsi Limited is 23.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Elxsi Limited (500408)?
Revenue at Tata Elxsi Limited is growing +11.5% versus a year earlier (3y avg +14.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Tata Elxsi Limited (500408)?
Earnings per share at Tata Elxsi Limited are growing +58.4% versus a year earlier. How much earnings per share grew versus a year earlier.
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