Tata Elxsi jumps on buzz of testing driverless car

Tata Elxsi rose 5.68% to Rs 1,504 at 12:41 IST on BSE on reports that the company was looking to test a driverless car on the roads of Bangalore.

Meanwhile, the BSE Sensex was up 80.86 points, or 0.30%, to 27,316.52.

On the BSE, so far 3.23 lakh shares were traded in the counter, compared with average daily volumes of 83,294 shares in the past one quarter. The stock had hit a high of Rs 1,521.35 and a low of Rs 1,443.10 so far during the day.

The stock hit a record high of Rs 2,396 on 2 February 2016. The stock hit a 52-week low of Rs 1,021.65 on 21 November 2016. The stock had underperformed the market over the past 30 days till 17 January 2017, rising 0.64% compared with the 3.26% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 5.15% as against Sensex's 2.68% decline.

The mid-cap company has equity capital of Rs 31.14 crore. Face value per share is Rs 10.

According to a media report, Tata Elxsi is looking to test an autonomous, or driverless, car out on the roads of Bengaluru. This would be a first in the country. Currently, all major automobile manufacturers as well as technology firms of the Silicon Valley, such as Google, Apple, Uber and Tesla, are building and testing autonomous vehicles. Cars that will drive themselves could be common on the streets by 2025, the report said.

Tata Elxsi works with carmakers and their specialised component suppliers. It is leveraging its knowledge in computer science and artificial Intelligence to grab a share of the soon to be multi-billion dollar global industry. It has already begun simulating and testing autonomous cars at a facility on the outskirts of Bengaluru, the report added.

Net profit of Tata Elxsi rose 13.1% to Rs 43.08 crore on 15% rise in net sales to Rs 303.29 crore in Q2 September 2016 over Q2 September 2015.

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.

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