Tata Elxsi returns 27% CAGR in the last 20 years. Should you invest?

The company was founded in 1989 and is a respected IT company belonging to the Tata Group of companies

Tata stock gave 27 CAGR

The company was founded in 1989 and is a respected IT company belonging to the Tata Group of companies. Tata Elxsi provides integrated IT design and mechanical design services. It has a good track record with various clients across various sectors. 

The firm leverages more than 30 years of design experience to create world-class products for its clients. The company reimagines the products and services using digital technologies like the IoT, Mobility, Cloud, AI and VR. 

The stock has performed exceedingly well on the bourses and has given a staggering 27% CAGR over the last 20 years. The 2022 returns so far have been 30% compared to the negative 8% return on the Nifty50. The stock is a consistent compounder and a darling stock for investors. It has made its investors richer over time and is one of the finest IT companies in India. 

Related: Multibagger stock: Rs 1lakh can turn upto Rs 5lakhs in 2 years.

Tata Elxsi share price

Tata Elxsi's 52-week high price is Rs 9420. The stock is currently available at a price of Rs 7812 as per the close on Thursday, 14th July 2022. The 52-week low of the stock is Rs 4107. The market capitalization of the firm is Rs 48000 crores.

In the last month, the stock has lost 8%. The YTD return is almost 30%. The last six months' return stands at 20% for the stock. The return in the last year is a mind-boggling 75%. This consistent stock performance is the reason for the investors' love.

In the last ten years, Tata Elxsi's share price has gone from Rs 122 to Rs 7812. This multibagger stock has been a market outperformer consistently. The stock price has increased in the last 20 years from Rs 62 to Rs 7812. This translates to a 12500% return or a CAGR of 27%. If you had invested Rs 1 Lakh in the stock ten years ago, you would have a corpus of Rs 63 lakhs today. Similarly, if you had invested Rs 1 lakh 20 years ago, you will have a corpus of Rs 1.25 crores today.

Conclusion

Tata Elxsi has been a multibagger stock, and the returns of the stock have been amazing. If you had invested 10 or 20 years ago in this stock, you would have a sizeable corpus. Such multibagger stocks are hard to find, and you should stick to your conviction bets to gain from long-term compounding in stocks. The past returns are no guarantee of future returns. Still, the envious track record of the company is getting investors interested in the stock. This IT stock from the Tata group has been one of the best investments in the Indian stock markets, and it has been the poster boy for investors.

Read this expert article to find out how to identify undervalued stocks.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

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