Tata Elxsi stock gains on collaboration with Germany-based Dräger for critical care innovation

Mar 28, 202406:49 UTC

Shares of Tata Elxsi gained 1.4 percent to trade at Rs 7,782 apiece on March 28 after it forged a partnership with Germany-based Dräger to advance critical care innovation in India.

So far this year, the stock of Tata Elxsi declined 11 percent, as against 0.7 percent rise in the benchmark Nifty 50. Tata Elxsi shares had hit 52-week high of Rs 9,191 per share on December 18, 2023.

Follow our live blog for all the market actionTata Elxsi and Dräger, a global leader in medical and safety technology,

announced collaboration to advance critical care innovation in India. As part of this collaboration, Dräger is expanding its research and development presence by establishing a new Offshore Development Center (ODC) at Tata Elxsi's facility in Pune.

The development center will unite talent from both organisations, dedicated to designing and developing innovative critical care medical devices for deployment in the Operation Theatre (OT) environment worldwide. This central hub will oversee all aspects of critical care product development, from conceptualisation to product design, prototyping, and testing, said the Tata Group firm in a statement.

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“Our collaboration with Tata Elxsi is a strategic step towards harnessing this potential to develop next-generation critical care solutions. The establishment of this center underscores our belief in the strategic importance of India as an R&D hub,” said Shalin Patel, Managing Director of Draeger India Group.

Earlier, analysts at Elara Securities maintained an 'accumulate' rating on Tata Elxsi, raising target price to Rs 8,610 per share from Rs 8,490. "We slightly raise FY25E/ 26E earnings by 0.6 percent/ 1.7 percent respectively. In FY23-26E, expect USD revenue/EBIT CAGRs of ~16 percent/18 percent, implying an EPS CAGR of ~15 percent," the brokerage said.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.