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Tata Elxsi Limited (TATAELXSI) Fair Value & Analysis

Technology · IN · Market cap ₹230B (≈ $2.4B) · ISIN INE670A01012

What is Tata Elxsi Limited really worth?

TE Tata Elxsi Limited TATAELXSI · BSE
Price₹3,550
Fair Value₹2,348
Upside−33.9%
Quality70/100

A solid business, but trading 51% above our fair value of ₹2,348.

As of Aug 27, 2026, the fair value of Tata Elxsi Limited is ₹2,348 per share against a price of ₹3,550, so the fair value sits 34% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +15.5 %/yr)
Solidly profitable · 15.7% net margin
generates free cash flow
Wide moat 85/100
Evidence: High Range ₹1,402 – ₹3,184

Fair value as of: Aug 27, 2026

From 24 valuation models · updated 10 days ago

Share price −5.2% over the past month.

What runs behind every stock

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

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹3,184). The favourable scenario is already priced in.
  • A fairly wide model range (₹1,402 to ₹3,184) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹10,201 ₹3,263 Fair Value ₹2,348 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹3,263 – ₹10,201 · fair‑value band ₹1,402 – ₹3,184 · the ₹3,550 price screens above the ₹2,348 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Tata Elxsi Limited (TATAELXSI) currently trades at ₹3,550, while our model-based Fair Value estimate is ₹2,348, implying the stock looks roughly 51.2% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of ₹2,597 per share, and 0 of the 24 models we run sit above the ₹3,550 price. Bear case: the Asset-Based group reads lowest at ₹327.10, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tata Elxsi Limited generated revenue of ₹37.0B at a net margin of 15.7%. Revenue grew 1.5% year over year. It earns a return on equity of 25.9%. The stock trades on a trailing P/E of 38.1. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹1,402 (bear case) to ₹3,184 (bull case); at ₹3,550, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −36% fair-value upside, at −34%, TATAELXSI screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹40.63 per share, which is 1.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence ₹1,384 ₹2,387 ₹4,119 76
Growth DCF ₹1,393 ₹2,369 ₹4,063 73
Owner Earnings ₹1,504 ₹2,597 ₹4,483 71
All 24 models by family
DCF Models
FCF DCF best evidence ₹1,384 ₹2,387 ₹4,119 76
Owner Earnings ₹1,504 ₹2,597 ₹4,483 71
5Y Revenue Exit ₹1,219 ₹2,028 ₹3,097 69
5Y EBITDA Exit ₹1,636 ₹2,854 ₹4,341 71
5Y P/E Exit ₹1,776 ₹3,133 ₹4,636 67
10Y Revenue Exit ₹1,224 ₹2,009 ₹3,146 63
10Y EBITDA Exit ₹1,541 ₹2,614 ₹4,171 64
10Y P/E Exit ₹1,635 ₹2,819 ₹4,414 60
Earnings-Based
Graham-Dodd ₹685.97 ₹2,736 ₹3,719 64
Lynch FV ₹679.32 ₹970.45 ₹1,262 61
PEG = 1.0 ₹679.32 ₹970.45 ₹1,262 57
EPV ₹967.30 ₹1,133 ₹1,279 70
Multiples
P/E Multiple ₹2,118 ₹2,825 ₹3,531 63
P/S Multiple ₹1,286 ₹1,715 ₹2,144 58
P/B Multiple ₹1,286 ₹1,715 ₹2,144 55
EV/EBIT ₹2,282 ₹3,032 ₹3,783 63
EV/EBITDA ₹1,923 ₹2,553 ₹3,184 64
EV/Revenue ₹1,169 ₹1,657 ₹2,144 51
Asset-Based
NCAV (Graham) ₹244.10 ₹327.10 ₹488.21 51
Growth DCF
Growth DCF ₹1,393 ₹2,369 ₹4,063 73
Rev-Margin DCF ₹1,219 ₹2,017 ₹3,002 69
Economic Profit
Residual Income ₹692.87 ₹920.46 ₹4,187 64
ROIC Compounder ₹1,080 ₹1,436 ₹1,899 70
Growth Earnings
Growth-Adj P/E ₹1,432 ₹2,046 ₹2,660 67

Widest divergence: DCF Models (₹2,597) versus Asset-Based (₹327.10). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 38.1
P/S ratio 6.37 P/E × margin
EPS (TTM) ₹93.27 price ÷ EPS = P/E 38.1
Dividend yield 2.0% payout 77.2%
Net margin 16.7% FY2026
Return on equity 25.9% TTM
More key figures
Profitability
Return on assets (EBIT) 28.1% avg 5y
Operating margin 20.9% TTM
Growth
Revenue (TTM) ₹37.0B TTM
Revenue growth (YoY) +1.5% 3y avg +6.1%
EPS growth (YoY) −45.3%
Balance sheet & cash flow
Free cash flow ₹6.5B FY2026

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 68 · Market factors (momentum, volatility) 33

Profitability 74
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Tata Elxsi Limited engages in the provision of product design and engineering, and 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.

Full company description

Tata Elxsi Limited engages in the provision of product design and engineering, and 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 for content curation and object action event meta-tagging; AI DMS, a driver intelligence service solution; ICX, a SaaS-based solution for automating, monitoring, and managing CPEs; SymanTEx, a digital personal assistant service solution; and TESA, an AI-enabled smart annotation platform for development of autonomous and intelligent systems. The company also provides QoEtient, a stream performance optimization platform for OTT service providers; TEPlay, an OTT/IPTV platform, for delivering video experiences; and Neuron, an autonomous network platform for telco operators. In addition, it offers TETHER, an IoT platform, for providing digital and connected features; eMobility HILS, a lab-based framework for validation of EV systems; RoboTaxi, a concept demonstrator vehicle; V2x Emulator, a customizable virtual simulation test solution for asserting road safety in a V2X environment; and Virtual-DRIVE, an IP solution, that provides a lab-based environment validation of autonomous driving and ADAS algorithms. Further, the company provides TEDREG, a regulatory intelligence platform, to aggregate and organize the latest regulatory updates from regulatory bodies; Digital Health Platform, a customizable platform for telehealth services; TEngage, a digital health platform; and TEcare, a digital therapeutics platform. It offers its solutions to automotive, broadcast and media, communications, off-highway equipment, healthcare and life sciences, appliances and consumer electronics, rail, semiconductor, and aerospace industries. The company has strategic partnership with CSIR-National Aerospace Laboratories to drive innovation in emerging areas, such as unmanned aerial vehicles (UAVs)

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹37.6B
Latest YoY
+0.8%
Avg. revenue growth/yr (3Y) 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.
+6.1%
Avg. revenue growth/yr (5Y) 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.
+15.5%
Avg. revenue growth/yr (7Y) 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.
+13.0%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+13.3% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+11.3%
Dividend yield2.0%
Operating margin (EBIT) 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.26.7% (2021) → 20.7% (2026) · falling
Worst earnings drop21% (2026) · in INR
Revenue +11.0%/yr
FY22 ₹24.7B
FY23 ₹31.4B
FY24 ₹35.5B
FY25 ₹37.3B
FY26 ₹37.6B
Net income +3.4%/yr
FY22 ₹5.5B
FY23 ₹7.6B
FY24 ₹7.9B
FY25 ₹7.8B
FY26 ₹6.3B

TATAELXSI screens 51% overvalued. Compare with SAP SE →

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

Peer Group

Software - Application · 691 stocks

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.

Quality Score 70 · Top 25%
Fair Value upside −34% · Below median
Return on equity (TTM) 26% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 2% · Below median
Dividend yield (TTM) 2.0% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 38.1× · Pricier than median
P/B 7.57× · Pricier than 75% of peers
P/S (TTM) 6.22× · Pricier than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 28.5× · Pricier than 75% of peers

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 (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAP €191.32 €169.59 −11%
Shopify Inc SHOP C$209.78 C$28.76 −86%
Uber Technologies, Inc UBER $78.82 $43.66 −45%
Salesforce, Inc CRM $259.23 $249.28 −4%
ServiceNow, Inc NOW $138.43 $43.73 −68%
Cadence Design Systems, Inc CDNS $340.39 $112.57 −67%
Snowflake Inc SNOW $329.11 $42.27 −87%
Adobe Inc ADBE $266.51 $454.04 +70%
Automatic Data Processing, Inc ADP $277.62 $177.51 −36%
Intuit Inc INTU $332.70 $363.46 +9%

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Frequently asked questions

Is Tata Elxsi Limited (TATAELXSI) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹2,348 versus a price of ₹3,550, about −34% upside (overvalued).
What is the fair value of TATAELXSI?
Our model-based fair value for Tata Elxsi Limited is ₹2,348 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹3,550.
What is the quality score of TATAELXSI?
Tata Elxsi Limited has a Quality Score of 70/100. 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 ₹2,348 (as of Aug 27, 2026) from 24 valuation models. Cautious scenario ₹1,402, optimistic scenario ₹3,184. 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 ₹2,348, about −34% upside versus a price of ₹3,550 (overvalued). Cautious scenario ₹1,402, optimistic scenario ₹3,184. 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 ₹37.0B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of TATAELXSI?
The net profit margin of Tata Elxsi Limited is about 15.7%, meaning it keeps roughly 15.7% of revenue as net income. Based on the latest reported figures.
Does Tata Elxsi Limited pay a dividend?
Tata Elxsi Limited currently shows a dividend yield of about 2.03% relative to its recent price (as of Aug 27, 2026).
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