MOSL: TATA ELXSI: Optimum blend of design and technology-Exciting opportunities ahead
​Tata Elxsi: Optimum blend of design and technology; Exciting opportunities ahead
(TELX IN, Mkt Cap USD0.8b, CMP INR1692, TP INR1992, 18% Upside, Buy)
Tata Elxsi (TELX) held its investor meet in Mumbai, where Mr Madukar Dev (CEO) and Mr Nitin Pai (Head – Marketing) spoke in detail about its businesses and strategy for future growth. The company remains confident of exploring opportunities that lie ahead in its specialized verticals of automotive, video broadcasting, healthcare and industrial design & visualization. The company plans to identify technologies that can be implemented in these verticals and then build capabilities to invest in solutions. With the advent of Internet of Things (IoT), Robotics and AI, etc., the focus would be on adopting such technologies and blending it with solutions such as OTT, driverless cars and automated testing to cater to various ecosystems, including consortiums, R&D institutions, start-ups and silicon vendors.
Automotive – use of electronics in transportation to provide opportunities
Automotive continues to be the fastest-growing and highest revenue contributor (~48% of overall revenue and ~60% of EPD revenue) for the company. Growth in the segment has been primarily driven by investments in solutions related to infotainment, active safety, connected cars, and body electronics, among others. The company’s advanced autonomous vehicle middleware platform ‘AUTONOMAI’ was recently licensed by one of the world’s top five automotive OEMs for its driverless car R&D. The platform not only provides carmakers and tier-1 automotive suppliers with a solution covering perception, GNC and drive-by-wire systems to build, test and deploy autonomous vehicles, but also allows rapid region-specific adaptation through its pre-integrated validation datasets and AI & deep-learning capabilities.
The company has also implemented solutions like “ConnectNext†infotainment for Zest and “JukeCar†app for Tiago. However, the primary focus, going forward, would be to further develop capabilities in active safety, with implementation of driverless cars as the end-goal.
Tata Elxsi Limited is engaged in the design and development of computer hardware and software. The Company operates in two segments: System integration & support, and Software Development & Services. Its system integration & support segment is engaged in implementing and integrating systems and solutions for computing, broadcast, virtual reality, storage, and disaster recovery. Its software development & services segment comprises three business divisions: Embedded Product Design, which provides technology consulting, new product design, development, and testing services for the broadcast, consumer electronics, healthcare, telecom and transportation industries; Industrial Design (ID), which services a range of industries, including automotive, consumer electronics, retail and consumer goods and healthcare, and Visual Computing Labs (VCL), which provides three dimensional (3D) animation services, addressing content development for feature films, television and advertising commercials.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.