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Tata Elxsi reports disappointing Q4 results prompting Morgan Stanley downgrade
Tata Elxsi's Q4 earnings fell short of expectations, prompting Morgan Stanley to downgrade its target price to Rs 4,660 per share and maintain an 'Underweight' rating. The brokerage highlighted a weak revenue run-rate, particularly in the transportation segment, which saw a nearly 10% sequential decline, attributed to trade and geopolitical uncertainties affecting major auto clients in the US and Europe.
NSE adds 45 new stocks to futures and options trading segment
The National Stock Exchange (NSE) has expanded its futures and options (F&O) segment by adding 45 new stocks, effective November 29, 2024, increasing the total to 223. This inclusion, following SEBI’s revised criteria, aims to enhance liquidity and market participation, featuring notable stocks like LIC, Jio Financial Services, and Zomato. Analysts anticipate that this move will boost trading volumes and improve price discovery for these stocks.
BSE revises price band for Adani Total LIC Zomato Paytm and others
BSE Ltd has revised the price band of 44 stocks, including Adani Total, LIC, Zomato, and Paytm, to 10%, effective November 29, 2024. This change applies to various companies across sectors, aiming to standardize trading limits. The full list includes notable firms like DMart, Yes Bank, and Jio Financial Services.
JPMorgan anticipates a revival in Engineering Research & Development (ER&D) growth by 2025, driven by a recovery in the automobile sector, despite ongoing challenges in telecom that may limit valuation upside. The firm favors KPIT Tech and Persistent Systems for their strong growth potential, assigning target prices of Rs 1,900 and Rs 6,100, respectively, while also highlighting L&T Technology Services and Cyient as key recovery plays.
Tata Elxsi shows growth potential with target price of Rs 7901
Geojit Financial Services has given an "Accumulate" rating for Tata Elxsi, setting a target price of Rs 7,901. The company reported an 8% YoY growth in Q2FY25, driven by large deals in the transportation sector, despite challenges in Media & Communication and Healthcare segments. The EBITDA margin improved to 27.9%, and a significant $50 million deal was secured with a European automotive OEM, indicating strong potential for recovery in the second half of the year.
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