Investors turned bearish after Tata Elxsi reported weak performance in Q3FY25 and signalled at mixed outlook. Brokerage Kotak Institutional Equities has recommended selling the company after its Q3.

Tata Elxsi share price today fell 8 per cent after weak Q3 results. ICICI Securities has maintained REDUCE rating on Tata stock and cut the target price.

Morgan Stanley have downgraded Tata Elxsi stock to an "underweight" rating and reduced their target price to Rs 6,000 per share from Rs 6,500

Tata Elxsi shares fell nearly 8% on January 10 after Q3FY25 results missed expectations. Net profits declined 3.5% to ₹199 crore while revenues rose 3% to ₹939.17 crore. The CEO highlighted growth in India and emerging markets amidst global challenges.

At 10:40 a.m., Tata Elxsi's share price was down 7% at Rs 5992.95. In early trade, the stock hit a 52-week low of Rs 5,924.

With limited growth visibility, a potential cut to consensus numbers, and high valuations, analysts expect the stock to underperform.

Tata Elxsi's Q3 performance was weak, missing moderate expectations. Weakness was across verticals with a modest uptick in the healthcare vertical, while the transportation and media verticals were muted.

Tata Elxsi Q3 results: Tata Elxsi announced a 3.5 per cent fall in net profits to ₹ 199 crore in the October to December quarter results of the financial year 2024-25, compared to ₹ 206.43 crore in the same quarter the previous year, according to the company's exchange filing.

Tata Elxsi's revenue for the December quarter stood at ₹939.2 crore, which was 1.7% lower as compared to ₹955.1 crore in the previous September quarter.

Tata Elxsis CEO highlighted that its Media & Communication business reported QoQ CC growth in a quarter that is typically soft and affected by furloughs.