Breakout stock: Tata Elxsi gains with heavy volumes!
The stock has broken its key resistance level of Rs 3900 with huge volumes giving importance to the breakout in the prices.
Tata Elxsi is seen outperforming markets on a down day for Sensex. The stock is up by more than 3.5 per cent while Sensex is down by more than 200 points.
The stock has broken its key resistance level of Rs 3900 with huge volumes giving importance to the breakout in the prices.Currently trading at Rs 3960 per share, Tata Elxsi is trading above its 20 DMA indicating near term bullishness. Tata Elxsi has provided multibagger returns in 1 year gaining more than 345 per cent. The stock has more than doubled in 2021 and is up by nearly 10 per cent in one month.
Recently the share of Tata Elxsi was in news because the company won the NASSCOM Engineering & Innovation Excellence Awards 2021 for Engineering Service Providers in all product categories. The stock is also trending because several leading brokers have come out with a buy recommendation in the counter this week, thus creating positive sentiment in the counter.
Tata Elxsi is showing decent growth trend in Sales, Net profits and EBIT. The company has delivered compounding profit growth of 19 per cent over last 5 years. The RoE is high for the stock at ~ 30 which reflects the high efficiency of the management. The company also has a high dividend pay-out ratio of over 50 per cent. On Tuesday several small-cap IT stocks are seen trending on stock market with the likes of R Systems and Ramco outperforming.