India, Oct. 2 -- Tata Elxsi has undergone a sharp valuation correction after its post-pandemic growth cycle lost momentum. The stock has fallen around 70% from its adjusted all-time high of about Rs. 10,760, with investors reassessing its growth trajectory, margins and premium valuation.

The correction, however, is not entirely a story of deteriorating fundamentals. The company continues to report double-digit YoY revenue growth, while Transportation and Media & Communications remain supported by large deals. The bigger question is whether these wins can translate into sustained growth and margin recovery over the next few quarters.

With a market capitalisation of Rs. 19,308 cr, the shares of Tata Elxsi Ltd closed at Rs. 3099 per shar...