TATAELXSI

TATA ELXSI: MORGAN STANLEY MAINTAINS UNDERWEIGHT, TP ₹5,350 3QFY26 growth beat expectations, driven by auto sector strength and improving media & healthcare verticals. Margins rose on higher utilisation at 75%, ahead of prior guidance; utilisation expected to reach 80–85% over next two quarters. Macro challenges persist; revenue assumptions largely unchanged. MS cites rich valuations and unfavourable risk-reward, remaining cautious on sustainable growth recovery.