Tata Elxsi Shares Fall Post Q3 Results; Motilal Oswal Sees 19% Downside

• Tata Elxsi shares declined after reporting Q3FY26 earnings, despite improved sequential performance.
• Motilal Oswal reiterated a 'Sell' rating with a target of ₹4,700, citing expensive valuations (43x P/E) and uneven growth heavily reliant on transportation.
• JPMorgan maintained a 'Neutral' rating, raising its price target to ₹5,100, acknowledging premium valuation but positive automotive outlook.
• Q3FY26 constant currency revenue rose 3.2% sequentially, but reported PAT declined 29% QoQ due to a ₹95.8 crore exceptional charge from a new labor code.
• Management is optimistic for Q4 growth and margin improvement, expecting recovery in Media, Telecom, and Healthcare segments.

Why It Matters: Tata Elxsi shares fell due to an exceptional charge impacting Q3 PAT and Motilal Oswal's valuation concerns.