Bonanza has recommended an accumulate rating on Tata Elxsi with a target price of Rs 215 in its August 24, 2009 research report.

"Due to cyclical nature of Company’s business, 1st Quarter of Financial year is the weakest. Going forward, we expect the company to report a moderate gain in topline and bottomline for FY10. We maintain that the company would post an EPS of 19.9 for FY10 and is currently trading at a forward earning multiple of 8.3x, which we believe to be fairly valued. However, good earnings growth FY11 onwards remains a possibility and investors can expect good appreciation of share price. Recommend long term Investors to accumulate the counter in range 150-160 with a target of Rs 215 in a year’s time. However due to the volatility in the market a 10-15% decline in prices cannot be ruled out from the recommended range," says Bonanza's research report.