Stock 360: This Tata Group company is the most expensive midcap IT stock

Looking at the earnings per share (EPS) number for Tata Elxsi, in 9 months it has done what it did in FY20 and that’s a significant growth. However, it is now the most expensive midcap IT stock.

They did Rs 41 EPS last year, added about Rs 18 in this quarter and talking about perhaps Rs 60 for this year and assuming if this growth rate continues, 30 percent jump in that then in that case the next year’s EPS would be Rs 80.

It’s a Tata Group stock and growth rate has been higher than TCS and the risk is that that Tata Group should not merge it with TCS.