Tata Elxsi jumps 5% after fourth quarter earnings, Rs 75 dividend announcement boosts sentiment
Tata Elxsi's share price surged more than 5% in early trading on April 21, 2025 after the company announced its 25-year results for the fourth quarter and announced a final dividend of Rs 75 per share. The stock opened at Rs 4,801 on BSE, soaring to Rs 5,171.50 compared to the previous closing price of Rs 4,899.75. Despite the cumbersome quarterly performance, the sharp rise is still driven by investor interest driven by technical tips and dividend attraction.
Performance in the fourth quarter: Profits are stable, but profit slides
Tata Elxsi reported net profit order declined by 13.4% in the March quarter, compared with Rs 19.99 crore in the third quarter. The decline is largely attributed to the ongoing headwinds of its core transport vertical, which continues to face challenges from global trade disruptions and geopolitical tensions.
The revenue from operating revenue was Rs 90.83 crore, down from Rs 9.39 crore in the previous quarter, but was almost flat when compared to the year-on-year. The price of EBITDA for the quarter was Rs 2077 crore, with a healthy EBITDA margin of 22.9%.
Rs 75 dividend cheers investors
The company's board of directors recommends a final dividend of 750% or a par value share of Rs 10,10 per share, but is approved by shareholders at the annual general meeting. This generous spending provided some buffer for earnings disappointment and attracted hunting dividend investors.
Technical breakthrough: Is this a dead cat rebound or a real deal?
Tata Elxsi's stock has dropped 55% to nearly 48% in the past eight months, according to Anshul Jain of Lakshmishree Investment and Securities. However, Monday’s rally reflected a potential reversal and was backed by a strong open-ended setup and 315% growth. If the stock continues to be above Rs 5,000 on a closing basis, it can drive towards Rs 5,742 in the short term towards Rs 5,742 resistance zone.
Buy or sell? Analysts remain cautious
Although technical indicators point to short-term gatherings, analysts recommend caution as macro uncertainties affect key business areas. Investors may consider buying declines, keeping a close eye on sustainability above Rs 5,000 and upcoming management comments.
