Tata Elxsi share price rises 5% post Q4 results, ₹75 per share dividend announcement. Should you buy or sell?

Stock Market today: Tata Elxsi share price gained 5% in the morning trade on Monday, April 21, post the Q4 results that were announced by the company last week. Tata Elxsi also announced a dividend of ₹75 per share.

Tata Elxsi Q4 Results

For the fourth quarter of FY25, Tata Elxsi reported a 13.4% quarterly drop in net profit to ₹172.4 crore from ₹199 crore in the previous quarter of FY25. This decline is ascribed to persistent issues in its main transportation sector, which is struggling as a result of international trade and geopolitical unrest.

For Q4 FY25, the company reported operating revenue of ₹908.3 crore, which was slightly lower than ₹939 crore posted in the previous quarter, though comparable to ₹906 crore reported in the year-ago quarter.

Tata Elxsi said that earnings before interest, tax, depreciation and amortisation or EBITDA, during the quarter stood at 207.7 crore, translating into an EBITDA margin of 22.9%.

Tata Elxsi Dividend Details

The Board of Directors of Tata Elxsi have recommended a final dividend of 750% i.e. ₹75 per equity share of par value of ₹10 each, for the financial year ended March 31, 2025, subject to approval by the shareholders of the company at the upcoming Annual General Meeting.

Tata Elxsi Shares Price Target

Tata Elxsi, after a 55% fall from all-time highs and a 48% drop in the last 32 weeks, is showing signs of a dead cat bounce, said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

“A strong open-low setup with a 315% volume surge suggests selling exhaustion and value buying. If the index holds above 5000 on a closing basis, the stock may rally towards the immediate resistance at 5742. This level will be a key target for short-term traders riding the bounce,” said Jain.

Tata Elxsi share price opened at ₹4801 on the BSE on Monday and rose to intraday highs of ₹5171.50, which translated into intraday gains of 5.5% over the previous day's closing price of ₹4899.75.

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