Home / Markets / Stock Markets /  Multibagger IT stock hits record high, rallies over 120% in a year
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Shares of Tata Elxsi surged in Monday's early deals to hit a record high level of 9,630 apiece on the BSE. The Tata Group stock has outperformed by rallying more than 61% in 2022 (YTD) so far as compared to about a per cent fall in benchmark BSE Sensex.

The IT company’s profit and revenue have climbed on large deals for cloud-based platforms and artificial intelligence used to improve products and customer experience. 

Tata Elxsi's revenue from operations rose 30% year-on-year (YoY) at 725.9 crore for the first quarter ending June 2022, and its net profit grew over 63% from the year-ago quarter to 184.7 crore. Its Chief Executive Officer (CEO) Manoj Raghavan had said that Tata Elxsi’s orders remain robust even as the global economy flashes warning signs.

The Tata Group firm's Q1FY23 EBITDA margin at 32.8% (+30 bps QoQ) was a strong beat on analysts' estimates despite wage hike for senior employees during the quarter. 

The company's management has said that in case of recession and budget cuts, impact on Tata Elxsi is likely to be less than that on the industry because the company operates at competitive rates enabled by its high offshore presence and the critical strategic client projects on which it is working. “We expect Tata Elxsi to grow at 24%/15.3% in FY23E/FY24E, which would be higher than the industry growth rate," ICICI Securities had said in note last month.

Furthermore, strong demand for niche design services used in making electric vehicles (EVs) has helped the multibagger stock surge this year, even as inflation concerns have battered the sector globally.

Part of the Indian conglomerate Tata Group, Bengaluru-based IT company Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications and Healthcare. Tata Elxsi shares have given multibagger return of more than 123% in a year's period.

Tata Elxsi plans to hire 3,000 to 3,500 freshers and 1,000 to 1,500 laterals for FY23. In contrast, many global companies like Google and Microsoft have signaled their intent to put a lid on hiring. During the first quarter of the current fiscal, Tata Elxsi crossed the 10,000 employee mark with 771 net additions in the quarter.

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