Tata Elxsi Ltd.
ISIN: INE670A01012 • Market Cap: ₹22,660 Cr
The 5-Pillar Quality Audit for Tata Elxsi Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (22.5%), Return on Capital Employed (30.0%), and equity compounding (20.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (16.4%) and 3Y PAT CAGR (43.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 34.61 vs PEG of 2.34 and Dividend Yield of 2.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 43.9%, backed by 20.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.0%)
Tata Elxsi Ltd. generates exceptional return on capital employed of 30.0%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 20.7%)
Shareholder equity compounds at a healthy 20.7%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 16.4%)
Revenue has expanded at 16.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 43.4%)
Net earnings have compounded at 43.4% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Information Technology)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Information Technology space.
Quantitative Strategy Eligibility
Checking TATAELXSI against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 84/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Information Technology Sector Peer Comparison
Compare TATAELXSI directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Tata Elxsi Ltd. (TATAELXSI)Current | 84/100 | ₹22,660 Cr | 34.61 | 30.0% | 0.00 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Wipro Ltd. (WIPRO) | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
Frequently Asked Questions: Tata Elxsi Ltd.
Q:What is the 5-Pillar Fundamental Score for Tata Elxsi Ltd. (TATAELXSI)?
Tata Elxsi Ltd. has a RupeeTools Fundamental Score of 84/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (91/100), Financial Health (89/100), Growth (92/100), Valuation (68/100), and Ownership Quality (70/100).
Q:Is TATAELXSI fundamentally strong for long-term investment?
Yes, TATAELXSI exhibits solid fundamental strength with a 84/100 score, driven by a return on equity of 20.7% and a debt-to-equity ratio of 0.00.
Q:Does TATAELXSI pass the Coffee Can Investing filter?
Yes! TATAELXSI satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does TATAELXSI compare against other Information Technology peers?
Within India's Information Technology sector, TATAELXSI trades at a P/E of 34.61 and generates an ROCE of 30.0%. Compare its 5-Pillar score of 84/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.