Saurabh Mukherjea’s Marcellus Investment Managers has shown faith in Tata group stock Tata Elxsi that has delivered whopping return to its long term investors in post-Covid market rebound. In its latest newsletter Marcellus Investment has informed that multibagger stock has entered rising giants portfolio of Saurabh Mukherjea’s Marcellus Investment Managers. Saurabh Mukherjea added Tata Elxsi shares in his portfolio after ending his long love affair with Footwear.
Informing about addition of Tata Elxsi in its rising giants portfolio, latest Marcellus newsletter informs that Tata Elxsi is an engineering research and development company that engages with target customers at an early stage of the product lifecycle. The brand ‘Tata’ is also a reason for preferring to Tata Elxsi stock as it helps the company to attract both customers and employee to score over its peers. Company’s huge investment in Research & Development (R&D) is expected to bring more patent to the company. Tata Elxsi’s focus on Autonomous Driving and Advanced Driver Assistance Systems (ADAS) is also a reason for Saurabh Mukherjea going bullish on this multibagger Tata stock.
The Marcellus newsletter further informs that Tata Elxsi has a focus on retaining its workforce for long as well. The newsletter says that Tata group company has opened office space in tier-2 cities of Kerala where, as per MErcellus Investment Managers channel checks, more than 50 per cent of the company’s workforce is located. In last six months, the Tata group company has opened a new office in Thiruvananthapuram, which employs near 2,500 engineers. Tata Elxsi has opened a new office in Kozhikode that will house to the tune of 1000 engineers.
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On reason for dropping Relaxo Footwear from the rising giants portfolio, the Marcellus newsletter said that the footwear company had to rise its product prices due to rising raw material costs. The company did this to protect its margins, however, this step has led to sharp decline in its business volume. This trend has continued for last six to nine months that may take its toll on the company’s stock in coming quarters.
Tata Elxsi share price history
This Tata group stock has remained under the base building mode for last one year, especially after the outbreak of Russia-Ukraine war. However, it has dropped some hint of coming out of this range-bound trend as the stock surged to the tune of 10 per cent in last one month. In post-Covid rebound, this stock has risen from around ₹600 to ₹6425 apiece levels in near three years, delivering around 1000 per cent return to its positional shareholders.
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