Tata Elxsi Limited (TATAELXSI) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Tata Elxsi Limited ₹3,402, price ₹3,093, upside +10.0%, quality 66 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range ₹3,089 – ₹10,202 · fair‑value band ₹2,163 – ₹4,423 · the ₹3,093 price screens below the ₹3,402 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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Tata Elxsi Limited provides product design and engineering, systems integration, and support services in India, the United States, Europe, and Internationally. The company operates through two segments, Systems Integration and Support, and Software Development and Services.
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Tata Elxsi Limited provides product design and engineering, systems integration, and support services in India, the United States, Europe, and Internationally. The company operates through two segments, Systems Integration and Support, and Software Development and Services. It offers AIVA, an AI-based video analytics platform that automates video tagging, object detection, content indexing, and metadata generation; and iCX, a SaaS-based solution for automating, monitoring, and managing CPEs. It also provides QoEtient, a platform for video streaming services; TEPlay, an OTT/IPTV platform; Neuron, an autonomous network platform for telco operators; and uLike, a platform for AI-powered content recommendation engine. In addition, it offers TETHER, a cloud-based platform for vehicle connectivity; eMobility HILS, a scalable solution for validating electric vehicle systems; Robo-Taxi, a platform for autonomous ride-hailing; AVENIR, a platform for real-time data processing, validation, and integration for software defined vehicles; AutonomAI, an AI-driven platform for self-driving capabilities; and MOBIUS+, a blockchain-powered solution. Further, it provides TEDREG, a regulatory intelligence platform for compliance management; Digital Health Platform, a customizable platform for remote patient monitoring, virtual consultations, and personalized health insights; TEngage, a digital health platform for patient engagement tools with customizable workflows, interactive communication channels, and performance tracking dashboards; TEDAX Big Data, an AI-driven analytics platform; and TEcare, a care management platform for multi-channel support and care plan customization. It serves automotive, broadcast and media, communications, off-highway equipment, healthcare and life sciences, appliances and consumer electronics, rail, semiconductor, and aerospace industries. The company was incorporated in 1989 and is headquartered in Bengaluru, India.
Stock analysis
Tata Elxsi Limited (TATAELXSI) currently trades at ₹3,093, while our model-based Fair Value estimate is ₹3,402, implying the stock looks roughly 9.1% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹3,038 per share, and 5 of the 26 models we run sit above the ₹3,093 price.
Bear case: the Economic Profit group reads lowest at ₹740.33, and 21 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹2,163 (bear) to ₹4,423 (bull), the price of ₹3,093 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 66/100 (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 ₹37.6B in FY2026 versus ₹24.7B in FY2022, a compound +11.0%/yr. Reported net income was ₹6.3B in FY2026, compounding +3.4%/yr from FY2022.
Key figures
Market cap ₹193B (≈ $2.0B) · P/E ratio 29.4 · P/S ratio 4.93 · EPS (TTM) ₹105.02 · Dividend yield 2.4% · Net margin 16.7% · Return on equity 21.3% · Return on assets (EBIT) 28.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low 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 10%, TATAELXSI screens cheaper than that median.
Fair Value models
Bear ₹2,163Fair Value ₹3,402Bull ₹4,423
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 2026 figures (about 6 months old). Earnings retained since then (₹15.30 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.
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
+0.8%
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.
+6.1%
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.
+15.5%
Start year 2021 (pandemic). Over 10 years: +13.3% a year
Revenue growth 21 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%
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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.
+13.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.3%
Dividend (yield on the price)2.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.3% vs 15.0%, slowing
Profit margin 2021 to 2026 ⓘ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.27% → 21%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +10.2% a year for the price and +4.5% for the forecasts.
Price, fair value, quality and upside side by side.
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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 · 636 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score66 · Above median
Fair Value upside+10.0% · Above median
Profitability
Return on equity (TTM)21.3% · Top 25%
Return on assets12.9% · Top 25%
Net margin (TTM)16.7% · Top 25%
Operating margin (TTM)19.0% · Top 25%
Growth and dividend
Revenue growth14.5% · Above median
Dividend yield (TTM)2.4% · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
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Is Tata Elxsi Limited (TATAELXSI) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹3,402 versus a price of ₹3,093, about +10% upside (undervalued).
What is the fair value of TATAELXSI?
Our model-based fair value for Tata Elxsi Limited is ₹3,402 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹3,093.
What is the quality score of TATAELXSI?
Tata Elxsi Limited has a Quality Score of 66/100. 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 (TATAELXSI)?
Our model-based price target is the fair value of ₹3,402 (as of Oct 2, 2026) from 26 valuation models. Cautious scenario ₹2,163, optimistic scenario ₹4,423. 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 ₹3,402, about +10% upside versus a price of ₹3,093 (undervalued). Cautious scenario ₹2,163, optimistic scenario ₹4,423. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Elxsi Limited (TATAELXSI)?
Tata Elxsi Limited reported trailing-twelve-month revenue of about ₹39.1B (latest available figure, as of Oct 2, 2026).
Does Tata Elxsi Limited pay a dividend?
Tata Elxsi Limited currently shows a dividend yield of about 2.42% relative to its recent price (as of Oct 2, 2026).
What growth is priced into Tata Elxsi Limited (TATAELXSI)?
For today's price to be fair in a discounted-cash-flow model, Tata Elxsi Limited would have to grow free cash flow by +14.7 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.5 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of TATAELXSI use?
Our models discount Tata Elxsi Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.31, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Tata Elxsi Limited that is +14.7 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Tata Elxsi Limited (TATAELXSI) delivered so far?
Over the past 5 years revenue at Tata Elxsi Limited grew +15.5 % a year. The price currently implies +14.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Tata Elxsi Limited (TATAELXSI) growing?
The median revenue growth in the sector is +10.0 % a year. That is the yardstick for the growth priced into Tata Elxsi Limited (+14.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Tata Elxsi Limited (TATAELXSI)?
The free-cash-flow yield on the price is 4.03 %: that much free cash flow Tata Elxsi Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Tata Elxsi Limited (TATAELXSI)?
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 ₹3,402 per share (as of Oct 2, 2026), against a price of ₹3,093. 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 Oct 2, 2026, TATAELXSI trades below its calculated fair value: price ₹3,093, fair value ₹3,402, a gap of about +10% (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 TATAELXSI?
No. The price is what the market pays today (₹3,093); the fair value is what the company's own numbers justify (₹3,402). For Tata Elxsi Limited the two are ₹309.28 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 ₹193B (market capitalisation, as of Oct 2, 2026). Per share that is ₹3,093; our models calculate a fair value of ₹3,402 per share.
What do the bullish and bearish scenarios say about TATAELXSI?
Our models span a range for Tata Elxsi Limited: cautious scenario ₹2,163, base ₹3,402, optimistic ₹4,423 per share (as of Oct 2, 2026, price ₹3,093). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TATAELXSI?
Tata Elxsi Limited trades at a price-to-earnings ratio of 29.4 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹3,402 is built from several models across several years. Other multiples: P/B 6.3, P/S 4.9, EV/EBITDA 22.5.
How solid is the balance sheet of Tata Elxsi Limited (TATAELXSI)?
Balance-sheet figures for Tata Elxsi Limited (as of Oct 2, 2026): return on equity 21.3%. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is TATAELXSI from its 52-week high?
Tata Elxsi Limited trades at ₹3,093, about 46% below its 52-week high of ₹5,748 and at the low of ₹3,089 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹3,402 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 Oct 2, 2026: price ₹3,093, calculated fair value ₹3,402 (+10%), Quality Score 66/100, 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 TATAELXSI 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 ₹3,402, 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 15.1 % above its aggregate fair value. Tata Elxsi Limited currently trades 9 % 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 (TATAELXSI)?
The closing price on Oct 1, 2026 was ₹3,093. Our model-based fair value is ₹3,402, about +10% 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 (₹2,163 to ₹4,423) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Tata Elxsi Limited (TATAELXSI) come from?
Earnings per share at Tata Elxsi Limited grew +19.8 % a year from 2015 to 2026. Broken into its drivers: revenue per share +14.9 %, EBIT margin +1.5 %, tax rate +1.6 %, residual (interest, one-offs) +1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Tata Elxsi Limited
How large is the market capitalisation of Tata Elxsi Limited (TATAELXSI)?
The market capitalisation of Tata Elxsi Limited is ₹193B (≈ $2.0B). 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 (TATAELXSI)?
The price-to-sales ratio of Tata Elxsi Limited is 4.93 (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 (TATAELXSI)?
Earnings per share at Tata Elxsi Limited are ₹105.02 (price ÷ EPS = P/E 29.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Elxsi Limited (TATAELXSI)?
The dividend yield of Tata Elxsi Limited is 2.4% (payout 71.4%). 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 (TATAELXSI)?
The net margin of Tata Elxsi Limited is 16.7% (fiscal year 2026). 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 (TATAELXSI)?
The return on equity (ROE) of Tata Elxsi Limited is 21.3% (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 (TATAELXSI)?
On an EBIT basis the return on assets of Tata Elxsi Limited is 28.1% (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 (TATAELXSI)?
The operating margin of Tata Elxsi Limited is 19.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Elxsi Limited (TATAELXSI)?
Revenue at Tata Elxsi Limited is growing +14.5% versus a year earlier (3y avg +6.1%). 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 (TATAELXSI)?
Earnings per share at Tata Elxsi Limited are growing +18.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Tata Elxsi Limited (TATAELXSI) hold?
Tata Elxsi Limited holds more cash than debt, ₹516M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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