Cyient is struggling with issues such as (1) Deteriorating growth in services business, (2) Challenges in top accounts (3) Issues in core vertical (Aerospace and Communication), (4) Focus on lower margin DLM business, (5) Declining services margin due to higher investments, and (6) Higher other income (~30% of PAT). There could be some recovery in performance (both revenue and margins) but concerns related to slowdown in decision making, accelerated trade war risks and higher mix of legacy services remain. We expect USD revenue growth of 1.5/7.8% and EBIT% of 11.3% for FY20/21E. The stock trades at reasonable valuation of 11.9x FY21E which is ~31% discount to LTTS. Risk to our thesis includes improved US/Europe macro and INR depreciation. We maintain NEU on Cyient post weak 1QFY20. Given the huge miss in revenue and margins, we cut EPE estimate by 11.4/10.7% for FY20/21E. Our TP of Rs 510 is based on 11x Jun-21E EPS.