Tata Elxsi partners with Japan's Alps Alpine to set up global engineering center; stock extends fall

Tata Elxsi and Alps Alpine -- Japanese manufacturer of electrical components and in-vehicle information systems -- on Tuesday announced a strategic long-term agreement to establish a global engineering center at its campus in Thiruvananthapuram. The engineering center will focus on software-led innovation and engineering to support Alps Alpine's vision for future mobility, the company said in an exchange filing.

Hideo Izumi, Alps Alpine's Chief Technology Officer, stated, "The engineering center with Tata Elxsi is key to Alps Alpine's growth strategy. Tata Elxsi, with its integrated design and technology services, is our partner of choice for developing the Right, Unique, and Green solutions and accelerating the growing vehicle software development sectors."

Tata Elxsi's MD and CEO, Manoj Raghavan, stated, "As the world adopts connected, autonomous and electric mobility, automotive companies are looking for innovation in technology and software to provide exceptional consumer experiences and drive future mobility initiatives. We are delighted that Alps Alpine has chosen Tata Elxsi as a strategic technology and engineering partner in its journey to transform its products and services for future mobility."

The company also said that the design and engineering teams in the GEC will focus on developing next-gen digital technologies for connected infotainment, body electronics, sensing and communication technologies, AUTOSAR, platform development, and cybersecurity, and support Alps Alpine in its strategic goals of global market expansion.

In terms of share value, Tata Elxsi fell for the fifth straight session in today's deals. The stock was last seen trading 1.08 per cent lower at Rs 5,894 over its previous close of Rs 5,958.05.

On the technical front, the stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 30.04. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 51.99.

Tata Elxsi has an average target price of Rs 7,483.60, Trendlyne data showed, suggesting a potential upside of 26.95 per cent. The scrip has a one-year beta of 0.83, indicating average volatility.

Around 13,000 shares changed hands today on BSE, which was lower than the two-week average volume of 9,415 shares. Turnover on the counter stood at Rs 7.49 crore, commanding a market capitalisation (m-cap) of Rs 36,705.73 crore.

Meanwhile, Indian equity benchmarks traded slightly lower in late deals today, dragged by metal, technology and automobile stocks.

Also read: FDs Vs Shares Vs Gold Vs Real Estate: Here’s how much money to invest in these assets in FY24

Also read: Bandhan Bank shares dive 8% to hit fresh 3-year low, take 3-day fall to 14%