Sell Tata Elxsi Ltd For Target Rs. 4,450 by Motilal Oswal Financial Services Ltd

* We expect revenue to grow 1% QoQ in CC terms in 2Q, reflecting a gradual recovery after a soft 1Q.
* Margins to gradually recover in the next three quarters; however, FY26 margins may remain below FY25 levels.
* Transportation (~50% of revenues) is expected to drive growth, while Media & Communications should recover in 2Q on the back of consolidation deals. HLS is likely to remain soft.
* Commentary on Tier-1/OEMs, deal pipeline, and the HLS vertical will be key monitorables.
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