For FY22E, TELX is set to grow at a 10pp premium to mid-tier peers both on growth and margin. We initiate coverage on TELX with a BUY and target price of INR 3,330, based on 36x (base case) at 1.6x the average multiple, supported by top quadrant growth/efficiencies, quality of franchise, industry tailwinds, and favourable risk-reward (upside risk to base case). Tata Elxsi (TELX) is a niche ER&D; services company with strong scalability (20% CAGR over FY21-24E) based on integrated design & engineering practice and a superior execution framework. TELX is a good proxy to play the disruption and confluence in automotive (Connected, Autonomous, and Electric), broadcasting & communication (OTT) and healthcare (Telemed) industries. The company has recently pivoted its model to focus on large and multi-year deals (Schaeffler, Aesculap) as well as invested in creating vertical adjacencies that address diversification and supply-side fungibility.