Tata Elxsi signs pact with CSIR-NAL for advanced air mobility; stock climbs

Tata Elxsi said it has entered into a memorandum of understanding (MoU) with CSIR-National Aerospace Laboratories (CSIR-NAL) to establish a strategic partnership for advanced air mobility. "This collaboration is focused on driving innovation in emerging areas such as Unmanned Aerial Vehicles (UAVs), Urban Air Mobility (UAM), and electric vertical take-off and landing (eVTOL) aircraft. The partnership combines NAL's deep aeronautical expertise and Tata Elxsi's technological capabilities in electrification, AI/ML, sensor fusion, and certification processes to support global and Indian markets," the company stated in a BSE filing on Tuesday.

"The global market for UAVs and UAM is rapidly evolving, with applications spanning industries such as logistics, agriculture, defence and urban transportation. This partnership will accelerate product development cycles for these sectors by providing access to advanced testing infrastructure, methodologies, and expertise," it added.

"Tata Elxsi and CSIR-NAL will jointly focus on technologies such as aerodynamic design, autonomous systems, and secure communications to address the unique needs of both manned and unmanned air mobility systems," the Tata Group entity further stated.

On the stock-specific front, Tata Elxsi moved up 0.79 per cent to settle at Rs 6,542.25. At this value, the stock has climbed 4.09 per cent from its 52-week low level of Rs 6,285.05, hit on November 18 last year. It saw high trading volume on BSE today as around 15,000 shares changed hands. The figure was higher than the two-week average volume of 9,066 shares. Turnover on the stock came at Rs 9.63 crore, commanding a market capitalisation (m-cap) of Rs 40,747.32 crore.

The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 31.59. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 49.49 against a price-to-book (P/B) value of 16.26. Earnings per share (EPS) stood at 131.16 with a return on equity (RoE) of 32.85.

Tata Elxsi is a subsidiary of Tata Sons, a holding company of the Tata Group. It provides design and technology services across industries including automotive, broadcast, communications, healthcare and transportation. As of September 2024, promoters held a 43.91 per cent stake in the company.

Meanwhile, Indian equity benchmarks took a breather today after witnessing a sharp cut in the previous trade. The 30-share BSE Sensex pack rose 234 points or 0.30 per cent to close at 78,199 and the broader NSE Nifty index moved 92 points or 0.39 per cent higher to finish at 23,708.