456.05 -15.35 (-3.26%)
NSENov 26, 2020 03:31 PM
The 20 reports from 7 analysts offering long term price targets for Cyient Ltd. have an average target of 393.43. The consensus estimate represents a downside of -13.73% from the last price of 456.05.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-10-26||Cyient Ltd. +||Axis Direct||424.35||480.00||424.35 (7.47%)||Target met||Buy|
Strong recovery across verticals, healthy deal pipeline and better execution by Cyient helped us gain the confidence about the growth prospect of the company. Hence, We are assigning 12x PE multiple to its FY23 EPS of Rs. 40.6 to revise our target upwards to Rs 480/-
|2020-10-16||Cyient Ltd. +||Motilal Oswal||389.50||400.00||389.50 (17.09%)||Target met||Neutral|
|2020-10-16||Cyient Ltd. +||Axis Direct||389.50||440.00||389.50 (17.09%)||Target met||Buy|
Cyient reported Strong broad based growth in Q2 FY21, revenue stood at Rs. 1,003 crs up 0.1% YoY and 3.1% QoQ. Operating profit margins showed a strong growth of 52.5% YoY at 11%, Services operating margin grew by 170 bps at 12.2% than previous quarter
|2020-10-16||Cyient Ltd. +||ICICI Securities Limited||389.50||440.00||389.50 (17.09%)||Target met||Buy|
|2020-08-17||Cyient Ltd. +||Geojit BNP Paribas||389.20||460.00||389.20 (17.18%)||Target met||Accumulate|
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. In Q1FY21, consolidated revenue reported a de-growth of 8.9%...
|2020-08-03||Cyient Ltd. +||Nirmal Bang||325.50||417.00||325.50 (40.11%)||Target met||Buy|
Last month Indian equity market continued to rally along with the world markets. Chinese market outperformed all the markets where as European markets under performed. We saw announcement of further stimulus of over $2.0 trillion by European Union to support the most impacted countries and sectors and also pledged support for recovery of economy post COVID. The work on $1.2 trillion additional stimulus in US is also on and likely to get approved soon. Though recent Auto Sales number in two wheelers and passenger cars are encouraging and indicating revival in the sector but management commentary is becoming cautious with increasing COVID cases and local lockdowns in various part of the nation. Management commentary in various sectors indicated that though June was better than May but July seems to be flattish or declining as against June. And this trend is likely to continue till we get control over rising cases of COVID. Market seems to be ignoring FY21 earnings and is looking at FY22 as a normal year of operation and earning. Even on valuations, with the current run up, the market has reached near Pre-COVID levels of valuation and that too considering that earnings of FY22 wont be impacted by COVID. The easy money scenario in the world continues to support equity markets. We feel risk reward is not favorable and one needs to be cautious. We had seen European market under-performing post announcement of recent package and it is quite possible that post announcement of the package in US, we may see some correction...
|2020-07-27||Cyient Ltd. +||Geojit BNP Paribas||330.00||360.00||330.00 (38.20%)||Target met||Accumulate|
Geojit BNP Paribas
Weak quarter , valuation at comfortable levels. 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. We expect growth in FY22E due to communication and transportation vertical and value Cyient at 10x FY22E EPS (Close to 30% discount to last 5 year average P/E) with revised down target price of Rs.360 and change rating from Buy to Accumulate....
|2020-07-17||Cyient Ltd. +||HDFC Securities||295.15||285.00||295.15 (54.51%)||37.51||Sell|
L&T Technology Services: We maintain REDUCE on L&T Technology (LTTS) on broad-based portfolio dent and protracted operational recovery. 1Q revenue decline was steep at -12.5% QoQ (mirroring Cyient in decline), and the dent to margin was steeper, impacted by lower utilisation and volume cuts. Recovery will be slower (vs. pre-COVID moderating growth rate) and will be supported by (1) continued traction in telecom-hi-tech vertical (inorganic in 3Q) and medical devices vertical; and (2) gradual recovery in the transportation vertical (airline sub-sector hit in 2Q) and plant engineering vertical (O&G drag). Higher portfolio susceptibility to the global economic crisis and low-annuity/high-discretionary elements are likely to result in a slower recovery of LTTS, even as medium-term opportunities open up. Our target price of Rs 1,240, 16x Jun-22E EPS, follows ~3% EPS estimate cut for FY22E. Cyient: We maintain REDUCE on Cyient, based on weak 1Q performance and uncertain growth outlook. The services (~86% of revenue) segment is severely impacted (-18.6% YoY) by structural problem in Aerospace & Defence vertical (-28% YoY). Cyients higher mix of mechanical services and elevated exposure to stressed verticals (aerospace, travel and ENU) have magnified the COVID-19 impact vs. its peers. The company is struggling with issues such as (1) stress in services portfolio (-18.6% in FY21E), (2) issues in top accounts (A&D;), (3) focus on lower margin DLM business and (4) deteriorating margin profile due to investments. While some recovery is expected in 2H, concerns related to slowdown in decision making, COVID-19 related uncertainty, and higher mix of legacy services remain. Based on...
|2020-07-17||Cyient Ltd. +||Axis Direct||295.15||306.00||295.15 (54.51%)||Target met||Hold|
Cyient reported better than expected results in Q1 FY21. Revenue declined by 12.5%QoQ in cc terms and stood at $130.6mn. Its services revenue stood at $112.2 mn declined 14.3% in CC terms.DLM business showed a strong growth of 8.5%QoQ and stood at $18.4mn.
|2020-05-08||Cyient Ltd. +||HDFC Securities||208.50||240.00||208.50 (118.73%)||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. +||IDBI Capital||208.50||272.00||208.50 (118.73%)||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....
|2020-05-08||Cyient Ltd. +||ICICI Securities Limited||201.05||225.00||201.05 (126.83%)||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 (118.73%)||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.
|2020-04-07||Cyient Ltd. +||ICICI Securities Limited||218.80||255.00||218.80 (108.43%)||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 (65.21%)||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 (-5.89%)||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 (0.23%)||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. +||Motilal Oswal||455.00||470.00||455.00 (0.23%)||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).
|2020-01-17||Cyient Ltd. +||IDBI Capital||455.00||552.00||455.00 (0.23%)||21.04||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...
|2020-01-13||Cyient Ltd. +||Geojit BNP Paribas||455.00||540.00||455.00 (0.23%)||18.41||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...