Tata Elxsi vs Tata Technologies Which Is More Reliable?

Tata Elxsi and Tata Technologies are two leading companies under the Tata Group umbrella, both specializing in the field of technology solutions and services. While Tata Elxsi focuses on providing design and technology solutions for industries such as automotive, media, and healthcare, Tata Technologies offers engineering and IT services for various sectors. Both stocks have shown strong performance in the market, but differences in their business strategies and target markets can impact their stock performance. Investors should carefully analyze the financials and growth prospects of these companies before making investment decisions.

Tata Elxsi or Tata Technologies?

When comparing Tata Elxsi and Tata Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Tata Elxsi and Tata Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Tata Elxsi has a dividend yield of 0.96%, while Tata Technologies has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tata Elxsi reports a 5-year dividend growth of 40.67% year and a payout ratio of 0.00%. On the other hand, Tata Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Tata Elxsi P/E ratio at 55.80 and Tata Technologies's P/E ratio at 59.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tata Elxsi P/B ratio is 18.33 while Tata Technologies's P/B ratio is 11.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tata Elxsi has seen a 5-year revenue growth of 1.22%, while Tata Technologies's is -0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tata Elxsi's ROE at 34.06% and Tata Technologies's ROE at 20.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹7286.50 for Tata Elxsi and ₹940.00 for Tata Technologies. Over the past year, Tata Elxsi's prices ranged from ₹6286.00 to ₹9200.00, with a yearly change of 46.36%. Tata Technologies's prices fluctuated between ₹931.00 and ₹1275.00, with a yearly change of 36.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.