Share price of midcap IT establishment Tata Elxsi drooped seven percent moment after the company reported a successional decline in its net profit.For the quarter ended September, net profit stood at Rs174.27 crore as against Rs184.72 crore in the June quarter.

At 1030 am, the stock the top midcap clunker quoting at Rs,874 on the BSE, down6.8 percent. The BSE Midcap indicator was down only0.68 percent.On October 14, the company said its profit from operations grew 28 percent time- on- time to Rs763.2 crore in the September quarter. Profit after duty grew39.1 percent and hand mark crossed,000 with,532 net additions in the quarter. Ebitda profit periphery came in at29.7 percent.

The company’s growth was primarily volume- led, with bedded product design, artificial design and visualisation, and SIS showing successional growth of3.8 percent,13.5 percent and26.2 percent independently.Manoj Raghavan, CEO, said, “ We’re seeing strong and sustained growth in the automotive and conterminous parts, led by our electric vehicle and digital capabilities. ”

Brokerages remain cautious of the stock due to precious valuations. Morgan Stanley has an light call on the stock with a target price of Rs,800. “ Medium- term pitfalls on periphery and decoration valuations keeps us light, ” it said.

Judges at Choice Broking noted, “ While we’re confident about the growth of the company, we feel skeptical regarding company being suitable to maintain perimeters at a position that justifies current position of valuation. ” They’ve a reduce standing on the stock with a target price of Rs,963.The stock is presently trading at a price- to- earnings rate of78.5x.