Sales have grown from around Rs.1k million to around Rs.4k million from 2000 to 2009. Profits have grown from around Rs.46 million to around Rs.217 million from 2000 to 2009.
Tata Elxsi Ltd. has been earning a return of at least 20% on its net worth per year from 2000 to 2009. It has earnings per share of around Rs.18 in the last 12 months.
Tata Elxsi Ltd. has a cash and bank balance of around Rs.223 million. It has net current assets of around Rs.659 million. It has investments of around Rs.2 million. It has a net worth of around Rs.1k million. It has a market capitalization of around Rs.5k million.
At a market price of around Rs.180.35 and earnings of around Rs.18 the initial rate of return is more than 9 per cent ! The value of the company according to me should be atleast Rs.200.
Tata Elxsi Ltd. is a software company and has a Debt Equity Ratio of 0.09. Competitors are Infosys, TCS, Wipro, HCL Tech and Oracle Financial.
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