Please choose a stock to write about and explain what it is. Then choose whether you would invest or not invest in it and why. Explain whether this would be a short term or long term investment.
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Stock: Tata Elxsi (listed in BSE, NSE)
TICKER: TATAELXSI
Tata Elxsi is amongst the world’s leading providers of design and technology services for product engineering and solutions across industries including Broadcast, Communications and Automotive.
Valuation for deciding to Invest or Not to Invest:
Its intrinsic value as per P/E valuation is approximately ₹1100
It's currently trading at ₹800.
So it has a margin of safety of 1100-800= ₹300, when we buy the share at ₹800.
It is advisable to Invest.
Because as per finance principle, the stock must touch its intrinsic value to be in equilibrium.
There will be an upward moment in Long term.
So Investment Horizon is Long Term.
(₹= Indian rupee. )
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