TATAELXSI.NS TataElxsi NSE -7.43% INR4498.00 Feb’26 afterhrs: AI stock outlook

TATAELXSI.NS stock fell 7.43% to INR 4498.00 in after-hours trade on 24 Feb 2026 after a heavy session on the NSE. The drop follows profit-taking after a recent run-up and mixed signals from valuation metrics and momentum. Tata Elxsi (TATAELXSI.NS) remains a key AI and automotive software play in India, but the market is re-pricing risk as PE at 50.53 and PB at 10.87 look rich versus sector peers. We assess near-term catalysts, technical thresholds, and our model forecast to frame an AI-stocks trading view.

TATAELXSI.NS stock: intraday move and drivers

TATAELXSI.NS opened at INR 4675.50 and touched a day high of INR 4700.00 before closing near INR 4498.00, a -7.43% one-day change. Volume was 465,538.00 shares, above recent averages, signalling active selling pressure. Market participants cited profit-taking and mixed guidance from large clients in automotive and media as the main short-term drivers.

Fundamentals and valuation metrics for TATAELXSI.NS stock

Tata Elxsi shows strong margins with net margin 15.81% and ROE 21.28%, but valuation is elevated: PE 50.53, PB 10.87 and price-to-sales 7.99. EPS stands at 93.29 and market cap is INR 293,662,269,208.00 on NSE. These ratios imply the stock prices in high growth; investors should weigh margin strength and cash per share INR 203.75 against the premium multiple.

Technical view and trading signals for TATAELXSI.NS stock

Momentum indicators are negative: RSI 31.60, MACD histogram -50.10 and Williams %R -96.05, signalling oversold conditions but weak trend conviction. Key supports lie near the day low INR 4455.00 and the Bollinger lower band at INR 4630.52; resistance is around the 50-day average INR 5325.73. Traders using short-term AI-stocks strategies should watch a daily close below INR 4455.00 as bearish, and a recovery above INR 4700.00 as initial neutralisation.

AI business exposure and growth catalysts

Tata Elxsi earns meaningful revenue from AI-enabled platforms for automotive, broadcast and healthcare, and it sells an AI annotation platform to OEMs. This direct AI exposure supports above-sector revenue per share INR 589.45 and a healthy ROIC 21.27%. New design wins in ADAS and EV architecture could drive medium-term growth if order conversion and utilisation hold.

Meyka AI rates and forecast for TATAELXSI.NS

Meyka AI rates TATAELXSI.NS with a score out of 100: 77.25 (Grade B+), suggestion: BUY. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus.

Meyka AI’s forecast model projects a monthly price INR 4247.96, quarterly INR 4327.54, and yearly INR 6934.23. Compared with the current price INR 4498.00, the yearly forecast implies an upside of 54.17%, while the monthly model shows a short-term downside of -5.57%. Forecasts are model-based projections and not guarantees.

Risks, sector context and strategy for AI stock investors

Primary risks include multiple compression, client concentration in automotive, and a stretched receivables cycle with days sales outstanding near 99.92. The Technology sector average PE is 41.87, which makes TATAELXSI.NS relatively expensive. For AI-stocks strategy, consider staggered entries, stop-loss near INR 4400.00, and position sizing tied to volatility (ATR 171.73) and portfolio diversification.

Final Thoughts

TATAELXSI.NS stock shows a sharp after-hours repricing to INR 4498.00, reflecting profit-taking and short-term technical weakness. Fundamentals remain strong: EPS 93.29, ROE 21.28%, and a market cap of INR 293,662,269,208.00. Valuation is rich and the Technology sector average PE 41.87 highlights relative premium. Meyka AI’s forecast model projects a yearly price of INR 6934.23, implying 54.17% upside versus the current price, while short-term models point to possible drift to INR 4247.96. Use layered entries if you seek exposure to Tata Elxsi’s AI and automotive software growth, and keep stops and position limits given high PE and recent momentum. Remember, forecasts and Meyka AI grades are model outputs, not guarantees, and investors should run their own checks before trading.

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Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.