Tata Stock To Buy: Brokerage firm Geojit has recommended BUY rating on a Tata stock. The name of the Tata stock is Tata Elxsi -- a leading provider of IT ER&D (engineering, research and development) services. Tata Elxsi has capabilities across automotive, broadcast & communications, and healthcare industries.
Geojit said that it values Tata Elxsi at 33x FY28E EPS and recommends BUY rating, with a target price of Rs 5,135. The target price offers an upside of 20 per cent from Wednesday's (March 25) closing price of Rs 4,204.50.

Geojit said that Tata Elxsi posted a 2% per cent YoY revenue decline in 9MFY26, while sequential recovery was visible with 3.9 per cent growth. This was led by a 7.7 per cent rebound in Transportation on SDV-driven OEM ramp-ups and normalization of key client engagements.
Tata Elxsi's EBITDA margin declined 534 bps YoY to 22 per cent in the first nine months of FY26. EBUTDA, however, expanded by 220 bps on QoQ basis.
Geojit said that Tata Elxsi's anchor client recovery is expected over the next 1–2 quarters.
The brokerage said that Tata Elxsi is entering a recovery phase. This recovery will be driven by strong transportation growth from SDV-led deal ramp-ups, new OEM wins, & expansion into off-road segments.

It said that margins may face near-term pressure from wage hikes & Chinese competition, but rising utilization & operating leverage provide expansion potential without large-scale hiring.
“Slow OEM decision-making in Europe, the US, and Japan may delay deals, while Media & Communication and Healthcare are expected to recover gradually from Q4FY26. Despite macro and competitive pressures, Tata Elxsi’s domain expertise, design-led approach, and offshore execution position it for steady recovery,” Geojit aid.



