Tata Elxsi Shares Go Ex-Dividend Today: What Investors Need to Know
Tata Elxsi shares are trading ex-dividend today, Wednesday, June 11, 2025. The IT firm’s board had announced a dividend of Rs 75 per share back on April 17, which is now awaiting approval at the company’s 36th Annual General Meeting (AGM). If approved, shareholders can expect to receive this payment on or before June 30, 2025. June 11 was also set as the record date for dividend entitlement.
Understanding Tata Elxsi’s Business
Tata Elxsi generates the vast majority—nearly 97% of its revenue—from Software Development Services (SDS). This includes crucial areas like embedded product design (EPD), industrial design & visualization (IDV), and integrated product engineering services. Their main business segments are:
- Transportation: 54%
- Media & Communications: 32%
- Healthcare & Life Sciences: 12%
- Others: 1%
The remaining 3% of their revenue comes from System Integration Services & Support (SIS).
Stock Performance: A Mixed Bag
While Tata Elxsi shares have seen a 10% uptick in the last month, their year-to-date performance is down 1%. Over the past year, the stock has delivered a negative return of 5.46%.
Analyst Outlook: A “Sell” Rating from Ventura Securities
Ventura Securities has initiated coverage on Tata Elxsi with a “Sell” rating, projecting a target price of Rs 5,518 over the next 24 months. This target suggests a potential downside of 14.8% from the current market price of Rs 6,473.
Ventura’s cautious outlook stems from several factors:
- Near-term uncertainties in key segments, particularly automotive and media & communications.
- Increased competition for European automotive manufacturers from Chinese players, compounded by recent Chinese restrictions on rare earth exports, which are vital for EV production.
- Customer mergers and acquisitions in the Media & Communications sector leading to reduced R&D spending.
- Concerns over tariff uncertainty and currency fluctuations that could negatively impact profit margins.
- Ventura believes the current valuation of 36.4 times FY28 earnings is “stretched,” even with optimistic growth projections.
It’s worth noting that other analysts generally hold a “Sell” or “Hold” stance on Tata Elxsi, with average target prices often below the current market price, hinting at further potential downside.