In a filing to the stock exchanges, Tata Technologies revealed that it has signed a Memorandum of Understanding (MoU) with Telechips, a leader in semiconductor technologies. The MoU aims to integrate Tata Technologies’ expertise in automotive software engineering with Telechips’ cutting-edge technologies, including system-on-chips (SoCs), AI Vision ADAS (Advanced Driver Assistance Systems) processors, and network gateway processors, the company said.
The partnership will focus on developing turnkey SDVs, according to the company statement.
“We are delighted to collaborate with Telechips, combining their advanced semiconductor technology with our deep domain knowledge and expertise in turnkey SDV development to help our customers create competitive software-defined vehicles,” said Warren Harris, CEO and Managing Director of Tata Technologies.
The company said the collaboration will also focus on co-developing a scalable software framework for ADAS and autonomous vehicle platforms, utilizing artificial intelligence to enhance situational awareness and decision-making.
Tata Technologies Share Performance and Analysts’ Views
Despite Wednesday’s rally, Tata Technologies’ shares have faced challenges in recent months. The stock has dropped over 12% in the past three months, compared to a 4% decline in the benchmark Nifty 50 index. It remains 24% below its all-time high of Rs 1,200 per share, recorded on January 12, 2024.
Earlier this month, Chola Securities initiated coverage on Tata Technologies with an “Accumulate” rating and a target price of Rs 1,082, citing the company as a compelling investment opportunity amidst the tech-driven transformation of the automotive sector.
Over the last year, Tata Technologies’ stock has declined by 23.34%, with a 5.86% drop in the past month alone.
Analysts remain divided on the company’s prospects. Among the 10 brokerage firms covering the stock, two recommend a “buy,” one advises a “strong buy,” three suggest a “sell,” and four advocate for a “strong sell.”
Tata Technologies’ financial performance
Tata Technologies reported revenue of Rs 809 crore for the September 2024 quarter, marking a year-over-year decline of 22.4%. Net profit for the quarter stood at Rs 122 crore, reflecting a sharp 71.8% drop compared to the same period last year.
Also read | Centrum Broking picks LIC among 5 insurance stocks with upside potential of up to 39%
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
