Tata Elxsi shares jump 7% after Q2 results, but Morgan Stanley, Motilal Oswal reiterate bearish calls
Tata Elxsi shares rallied up to 7% after the company reported 10% year-on-year profit growth and 15% revenue growth in the September quarter. Morgan Stanley, Motilal Oswal and JM Financial maintained cautious ratings, citing valuations, European automotive weakness and a gradual deal ramp-up.
Tata Elxsi shares experienced a 7% increase on the BSE after the company announced a 10% year-on-year rise in net profit for Q2. Despite higher employee and operating costs, revenue growth exceeded expectations. However, Morgan Stanley and Motilal Oswal maintain bearish outlooks, with Morgan Stanley keeping an Underweight rating and Motilal Oswal retaining a Sell rating. Both brokerages expect Q3 to be seasonally soft, and European automotive demand to be a key constraint.
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