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Tata Elxsi Limited (TATAELXSI) Fair Value & Analysis

Technology · IN · Market cap ₹229B

TE Tata Elxsi Limited TATAELXSI · NSE
Price₹3,773
Fair Value₹2,519
Upside-33.2%
Quality67/100
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Healthy Growth
Solidly profitable · 16.6% net margin
generates free cash flow
2.09% dividend yield
Ranks above peers (8/13)
Wide moat 78/100
Evidence: High Range ₹1,647 – ₹3,146 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated today

Fair value updated Aug 13, 2026, revised from ₹1,821 to ₹2,519 (+38.3%) since Aug 8, 2026. Share price +7.2% over the past month.

A solid business, but screening 33% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹3,146). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹1,647 to ₹3,146) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹10,202 ₹2,860 Fair Value ₹2,519 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹2,860 – ₹10,202 · fair‑value band ₹1,647 – ₹3,146 · the ₹3,773 price screens above the ₹2,519 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tata Elxsi Limited (TATAELXSI) currently trades at ₹3,773, while our model-based Fair Value estimate is ₹2,519, implying the stock looks roughly 33.2% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Tata Elxsi Limited generated revenue of ₹37.8B at a net margin of 16.6%. Revenue grew 8.3% year over year. It earns a return on equity of 21.3%. The balance sheet holds a net cash position of ₹516M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,647 (bear case) to ₹3,146 (bull case); at ₹3,773, 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 40% 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 -42% fair-value upside, at -33%, TATAELXSI screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Residual Income ₹651.41 ₹789.52 ₹2,130 76
Growth DCF ₹1,801 ₹3,380 ₹6,339 72
Gordon GGM ₹721.28 ₹1,575 ₹2,649 70
All 26 models by family
DCF Models
FCF DCF ₹1,827 ₹3,580 ₹6,941 38
Owner Earnings ₹1,675 ₹3,281 ₹6,357 31
5Y Revenue Exit ₹1,369 ₹2,400 ₹3,824 39
5Y EBITDA Exit ₹1,812 ₹3,349 ₹5,335 41
5Y P/E Exit ₹1,967 ₹3,683 ₹5,715 38
10Y Revenue Exit ₹1,460 ₹2,526 ₹4,221 36
10Y EBITDA Exit ₹1,807 ₹3,253 ₹5,565 37
10Y P/E Exit ₹1,915 ₹3,509 ₹5,903 35
Earnings-Based
Graham-Dodd ₹685.96 ₹3,608 ₹4,994 54
Lynch FV ₹991.41 ₹1,416 ₹1,841 50
PEG = 1.0 ₹991.41 ₹1,416 ₹1,841 46
EPV ₹962.74 ₹1,127 ₹1,272 59
Dividend Discount
Gordon GGM ₹721.28 ₹1,575 ₹2,649 70
DDM Multi-Stage ₹721.28 ₹1,290 ₹1,641 61
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 ₹2,274 ₹3,020 ₹3,767 53
EV/EBITDA ₹1,917 ₹2,545 ₹3,172 54
EV/Revenue ₹1,166 ₹1,652 ₹2,137 43
Asset-Based
NCAV (Graham) ₹244.10 ₹327.09 ₹488.20 50
Growth DCF
Growth DCF ₹1,801 ₹3,380 ₹6,339 72
Rev-Margin DCF ₹1,369 ₹2,372 ₹3,723 67
Economic Profit
Residual Income ₹651.41 ₹789.52 ₹2,130 76
ROIC Compounder ₹1,126 ₹1,567 ₹2,169 67
Growth Earnings
Growth-Adj P/E ₹1,727 ₹2,467 ₹3,207 68

Widest divergence: DCF Models (₹3,281) versus Asset-Based (₹327.09). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹37.8B
Revenue growth (YoY) +8.3%
Net margin 16.6%
Return on equity 21.3%
Free cash flow ₹7.8B FY2026
P/E ratio 37.4
More key figures
Operating margin 24.1%
EPS (TTM) ₹100.82
Dividend yield 2.1%
EPS growth (YoY) +27.8%
Net cash ₹516M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 67 · Market factors (momentum, volatility) 32

Profitability 74
Margins and returns on capital today
Quality Growth 8
Are margins and returns improving?
Cashflow 78
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 15
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.

About the company

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.

Full company description

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.

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. 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. 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. growth/yr (21Y) 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.
+15.4%
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
Character of growth · EPS growth decomposed (2015-2026) +19.8 % p.a.
Revenue per share +14.9 pp

of which total revenue +14.9 pp · buybacks/dilution +0.0 pp

EBIT margin +1.5 pp
Tax rate +1.6 pp
Residual (interest, one-offs) +1.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

TATAELXSI screens 33% 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

Peer Group

Software - Application · 713 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 67 · Top 25%
Fair Value upside −33% · Below median
Return on equity (TTM) 21% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 37.4× · Pricier than median
P/B 7.52× · Pricier than 75% of peers
P/S (TTM) 6.05× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 27.7× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 4
FUTURE 42 · sector 38
PAST 85 · sector 13
HEALTH 0 · sector 98
DIVIDEND 42 · sector 27

VALUE 0: the price sits above our fair-value range.

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Tata Elxsi Limited (TATAELXSI) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹2,519 versus a price of ₹3,773, about −33% (overvalued).
What is the fair value of TATAELXSI?
Our model-based fair value for Tata Elxsi Limited is ₹2,519 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹3,773.
What is the quality score of TATAELXSI?
Tata Elxsi Limited has a Quality Score of 67/100. 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 revenue of Tata Elxsi Limited (TATAELXSI)?
Tata Elxsi Limited reported trailing-twelve-month revenue of about ₹37.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of TATAELXSI?
The net profit margin of Tata Elxsi Limited is about 16.6%, meaning it keeps roughly 16.6% 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 2.09% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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