The 25 reports from 9 analysts offering long term price targets for Cyient Ltd. have an average target of 390.25. The consensus estimate represents an upside of 48.33% from the last price of 263.10.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-05-08||Cyient Ltd.||HDFC Securities||208.50||240.00||208.50 (26.19%)||Target met||Sell|
Our TP stands Rs 240, based on 9x FY22E EPS, which is at ~30% discount to 5Y avg. 1Y-fwd P/E multiple. We downgrade Cyient to REDUCE from ADD post a weak performance and bleak growth outlook. Services growth and margin performance in 4Q was disappointing. Growth in 1HFY21 will be severely impacted due to structural problem in A&D; and supply side (Covid related) issues in Communication and Transportation verticals. Cyients higher mix of mechanical services and elevated exposure to stressed verticals has magnified the Covid-19 impact vs. its peers. We have reduced EPS est. by 16.4/13.8% for FY21/22E.
|2020-05-08||Cyient Ltd.||ICICI Securities Limited||201.05||225.00||201.05 (30.86%)||Target met||Hold|
ICICI Securities Limited
Cyient Ltd (Cyient) reported a poor set of Q4FY20 numbers. Revenues declined 3.8% QoQ mainly led by 5.6% QOQ decline in services revenues. The decline in services revenues was led by 24.7% QoQ decline in E&U; vertical and 22.3% QoQ decline in semiconductor IoT and Analytics. Normalised margins fell 118 bps due to lower utilisation and pricing pressure. Reported PAT declined 58% QoQ. However, adjusting for one off...
|2020-05-08||Cyient Ltd.||Axis Direct||208.50||240.00||208.50 (26.19%)||Target met||Hold|
Cyient Ltd (Cyient) reported overall sluggish growth in Q4 FY20. Revenue stood at Rs. 1073.6 crs down 9.7% YoY and 2.9% QoQ. Operating profit showed a de-growth of 23.4% YoY at Rs. 408 crs, while normalized operating margin declined by 232 bps at 9.2% due to pricing pressure and lower utilization.
|2020-05-08||Cyient Ltd.||IDBI Capital||208.50||272.00||208.50 (26.19%)||Target met||Buy|
CYL's Q4FY20 consolidated revenue was in-line with our forecast, however, EBIT margin and EPS was a miss. Consolidated revenue of US$149.2 mn declined by 3.9% QoQ mainly on account of a 5.6% QoQ decline in Services business (88.7% of revenue). Consolidated EBIT margin declined by 120bps QoQ at 8.4% vs. our forecast of 8.9%. Recurring EPS of Rs6.9, declined by 30%/59% QoQ/YoY. CYL expects both services and DLM business to see a sharp QoQ decline in Q1FY21 due to the impact of Covid-19. It expects Aerospace & Defense vertical to be impacted the most. However, it expects stability in Q2FY21....
|2020-04-07||Cyient Ltd.||ICICI Securities Limited||218.80||255.00||218.80 (20.25%)||Target met||Hold|
ICICI Securities Limited
Cyient Ltd (Cyient) hosted a conference call to highlight the business impact of Covid-19. The company acknowledges that while the revenue trajectory remains uncertain, Cyient would aggressively focus on cost rationalisation to keep margins under control. The company expects some impact of Covid19 in Q4 with full visible impact in FY21E. We believe more than 50% of Cyient's revenues would be impacted by Covid-19. The company's exposure to aerospace (~35%), transport (~12%), energy (~5%) and semiconductor (~5%) is expected to face headwinds due to Covid-19 related issues. In order to mitigate the headwinds, Cyient is focusing on cost...
|2020-03-18||Cyient Ltd.||ICICI Securities Limited||276.05||276.05 (-4.69%)||Hold|
ICICI Securities Limited
The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...
|2020-01-21||Cyient Ltd.||ICICI Securities Limited||484.60||510.00||484.60 (-45.71%)||Target met||Hold|
ICICI Securities Limited
Revenues from core services fell marginally by 0.2% to US$155.2 million while DLM revenues dipped 36.8% QoQ to US$15.1 million. Weakness within core services was mainly due to drag in its largest vertical aerospace & defence (decline 5.1% QoQ) on account of a dip in spend in engineering design. Decline in transport (down 14.7% QoQ) vertical also contributed to the slowdown in core. On the positive side, communication recovered healthily with 2.3% QoQ growth. Going ahead, growth is expected to gradually recover in aerospace from Q4FY20E. Taking into account...
|2020-01-17||Cyient Ltd.||HDFC Securities||455.00||490.00||455.00 (-42.18%)||Target met||Neutral|
Cyient is struggling with issues such as (1) Stress in services portfolio, (2) Growth challenges in top accounts (3) Issues in core vertical (A&D), (4) Focus on lower margin DLM business and (5) Lower margins due to higher investments. There could be some recovery in performance (both revenue and margins) but concerns related to slowdown in decision making, trade war risks and higher mix of legacy services remain. Cash generation and collections have improved. We expect USD revenue growth of -3.7/+4.2/+7.2% and EBIT% of 10.0/11.5/12.1% for FY20/21/22E. The stock trades at reasonable valuation of 11.0x FY21E, which is at a steep ~60% discount to LTTS. Re-rating will only happen with growth visibility and better execution (margin). Risk to our thesis includes better US/Europe macro and INR depreciation. We maintain NEU on Cyient post weak 3Q. Services revenue was below estimate while margin performance was inline. Some margin improvement is expected in FY21E but growth in core verticals remains challenged. We have increased EPS est. by 1.0/0.8% for FY21/22E and our TP of Rs 490 is based on 11x Dec-21E EPS.
|2020-01-17||Cyient Ltd.||IDBI Capital||455.00||552.00||455.00 (-42.18%)||109.81||Buy|
CYL's Q3FY20 revenue was in-line with our forecast, however, EBIT margin and EPS were a beat. Consolidated revenue of US$155.2 mn declined by 5.5% QoQ mainly on account of sharp decline in DLM (US$15.1 mn vs. US$23.8 mn in Q2FY20). Services business (90.3% of revenue) saw a 0.5% QoQ decline in CC. Consolidated EBIT margin remained unchanged QoQ at 9.6% vs. our forecast of ~50bps QoQ decline. EPS of...
|2020-01-17||Cyient Ltd.||Motilal Oswal||455.00||470.00||455.00 (-42.18%)||Target met||Neutral|
Also, the ongoing forced attrition may impact employee morale, posing further growth challenges (like in case of Cognizant). Given the subdued outlook on growth/margins and the potential risks because of softer aspects, we Downgrade to Neutral, valuing it at 11x one-year forward P/E. One-off investment associated with conversion of a project in Transportation (from T&M; to Risk-Reward) impacted growth and margins. In addition, the ongoing forced attrition may impact employee morale, posing further growth challenges (like in case of Cognizant). Given the subdued outlook on growth/margins and the potential risks because of softer aspects, we Downgrade to Neutral, valuing it at 11x one- Revenue decline in 3Q was mainly due to the lower number of working days, coupled with high onsite deployment in Aero & Defense vertical. The outlook on key verticals like Aerospace & Defense (~35% of revenue) In addition, the ongoing forced attrition may impact employee morale, posing further growth challenges (like in case of Cognizant).
|2020-01-13||Cyient Ltd.||Geojit BNP Paribas||455.00||540.00||455.00 (-42.18%)||105.25||Buy|
Geojit BNP Paribas
Cyient Ltd, formerly known as InfoTech Enterprises is one amongst the leading players in the IT enabled services space providing services to the Engineering Research and Development segment. Stable revenue growth with 16% CAGR in the last 5 years from FY14. Fresh order intake in the services division to propel revenue growth to 14.2% in FY21E from 3% in FY20E. Expansion of its R&D; facility in Warangal with net addition of 600...
|2019-10-25||Cyient Ltd.||Axis Direct||400.90||400.90 (-34.37%)||Neutral|
Cyient Ltd., one of the leading Engineering and Research and development services, company reported revenue growth of 6.4% QoQ and degrew by 2.4% on YoY basis at Rs. 1,158 crs. The EBITDA margin in Q2 FY20 has improved sequentially by 35bps to 13.8% from 13.2% in Q1FY20.
|2019-10-23||Cyient Ltd.||Karvy||406.25||605.00||406.25 (-35.24%)||129.95||Buy|
|2019-10-22||Cyient Ltd.||IDBI Capital||423.10||552.00||423.10 (-37.82%)||109.81||Buy|
CYL's Q2FY20 result was in-line with our forecast. Consolidated revenue grew by 4.9% QoQ in US$ but still lower YoY by ~3.8%. The QoQ growth was largely led by DLM (14.5% of revenue) which grew by ~28% QoQ. Services business (85.5% of revenue) continued to see muted growth of +1.8%/-3.8% QoQ/YoY. Consolidated EBIT margin...
|2019-10-18||Cyient Ltd.||HDFC Securities||448.10||485.00||448.10 (-41.29%)||Target met||Neutral|
Cyient is struggling with issues such as (1) Stress in services business, (2) Challenges in top accounts (3) Issues in core vertical (Aerospace and Communication), (4) Focus on lower margin DLM business, (5) Margin stress 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. Cash generation and collections have improved. We expect USD revenue growth of -0.4/6.9% and EBIT% of 10.4/10.7% for FY20/21E. The stock trades at reasonable valuation of 10.6x FY21E which is ~38% discount to LTTS. Risk to our thesis includes better US/Europe macro and INR depreciation. We maintain NEU on Cyient post in-line revenue and margin miss in 2QFY20. Growth challenges remain in core verticals and margin recovery is slow. We have lowered EPS est. by 1.2/1.4% for FY20/21E and our TP of Rs 485 is based on 11x Sep-21E EPS.
|2019-10-17||Cyient Ltd.||Motilal Oswal||447.65||600.00||447.65 (-41.23%)||128.05||Buy|
Our revised TP of INR600 discounts forward earnings by 12x, instead of 13x, due to expectations of a slower margin expansion and also the risk in longer- Revenue grew by 4.9% QoQ versus our estimate of +3.1% QoQ. Growth was soft in the verticals of Aerospace (-1.7% QoQ) and In the Services business, revenue declined by 15% sequentially from clients in the range of Top 6-10; also CYL lost two clients in USD5m+ category. Even though Q3 is seasonally weak, CYL expects growth in services businesses. This is because the expected uptick in margins from cost rationalization will likely be largely offset by external consultant fees in FY20. This is because the expected uptick in margins from cost rationalization will likely be largely offset by external consultant fees in FY20.
|2019-08-06||Cyient Ltd.||Karvy||437.20||637.00||437.20 (-39.82%)||142.11||Buy|
|2019-07-25||Cyient Ltd.||Chola Wealth Direct||486.95||530.00||486.95 (-45.97%)||101.44||Buy|
Chola Wealth Direct
Background: Cyient is a mid cap IT company with revenue of INR 46.2bn (FY20) specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. In 1QFY20: revenue share from Americas (49.6%), Europe, Middle East, Africa (22.6%), and Asia Pacific (27.8%). Revenue share by business unit: Aerospace and Defense (36.4%), Transportation (11.7%), Semiconductor (5.0%), Medical & healthcare (3.3%), Utilities & Geospatial (13.5%), Communication (20.0%), I&ENR; (9.2%). Revenue contribution from Top 5 clients (31.8%), and Top 10 clients (43.0%), Total employees stood at 15,084....
|2019-07-23||Cyient Ltd.||Axis Direct||477.05||500.00||477.05 (-44.85%)||Target met||Neutral|
Cyient Ltd. reported weak results in terms of top line and on operating margins front in Q1FY20. Cyient posted degrowth in revenue of 5.2% on QoQ basis and 2.6%on YoY basis in constant currency (CC) terms for the period of Q1FY20 at $156.6 mn.
|2019-07-23||Cyient Ltd.||IDBI Capital||477.05||587.00||477.05 (-44.85%)||123.11||Buy|
CYL's Q1FY20 result was a miss across all parameters. Consolidated revenue declined by 5.2%/2.6% QoQ/YoY in US$. It was mainly impacted by the 6.1%/3.4% QoQ/YoY decline in the services business (88.1% of revenue). As a result, EBIT margin came off sharply by...