Tata Elxsi: HDFC Securities Cuts Target Price But Maintains Rating — Here's Why

HDFC Securities has revised its target price for Tata Elxsi, indicating a cautious outlook on the company's financial performance. The brokerage anticipates a gradual recovery in margins for the technology and design services firm, prompting a 6-7% reduction in its earnings per share (EPS) estimates. Despite this adjustment, HDFC Securities has retained its rating on Tata Elxsi, reflecting a belief in the company’s long-term prospects. The adjustment in target price highlights ongoing market challenges and the impact of macroeconomic factors on performance. Investors are advised to consider these factors when evaluating Tata Elxsi's stock in the current market landscape.