Cyient Ltd. share price target

Background: Cyient is a mid cap IT Company with FY15 revenues of INR 27.3bn specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. In 3QFY16: Ex- PR business, revenue share by geography: Americas (63.6%), Europe, Middle East, Africa & India (23.2%), and Asia Pacific (13.2%). Revenue share by operating unit: Engineering (62.5%), Data transformation, Network & Operation (37%), and others (0.5%). Revenue share by industry: Aerospace & defense (37.7%), Transportation (10.2%), Off-highway equipment (4.8%), Semiconductor (4.3%), Medical & Electronics (1.5%), Utilities (8.8%), Communication (19.4%), Energy & Natural resources (6%), Commercial & Geospatial (6.9%) and others (0.4%). Onshore/Offshore split:...

Cyient posted rev of US$ 118.4mn (flat QoQ, 0.2% CC), below our est by 3%. The core biz continued to falter, with rev down 0.1% QoQ (USD terms). We believe the company could face growth headwinds in the key aerospace biz (new programs falling), as well as issues in off-highway equipment (mining), semiconductor and energy (totally ~53% of rev).

Background: Cyient is a mid cap IT Company with FY15 revenues of INR 27.3bn specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. With 12,094 employee's spread across 35 locations, Cyient caters to multiple industries & its clientele includes 22 Fortune 500 & 27 Global 500 blue chip organizations. Cyient established a 49:51 strategic JV with Pratt & Whitney for its associate aerospace engineering company. It operates in two segments: Data Transformation, Network & Operations (DNO) segment catering to utility, transportation & government verticals & contributes 35.2% of revenues while the Engineering (ENGG) segment addresses solutions in the engineering, manufacturing & industrial product verticals & contributes 63.6% of revenues. The company's business is spread across...

Cyient posted revenue of US$ 118.4mn (up 3.6% QoQ, 4.2% CC), which was below our estimate by 1.6%. The services business continues to falter and is down 0.1% QoQ (USD terms). We believe Rangsons? lower profitability and predictability will lead to Cyient stretching margin levers at cost of revenue. Retain SELL with a revised TP of Rs 558 (Rs 528) at 13x one-year forward rolling EPS

Cyient reported revenue of US$ 114.3mn, well below our estimate by 8.2%. INR revenue came in at Rs 7.26bn, 8.1% below our estimate. This was due to a 34.3% QoQ revenue decline in Rangsons owing to deferment of an order to 2QFY16.

Background: Incorporated in 1991, Infotech is a mid cap IT Company with FY14 revenues of INR 22.1bn specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. With 12,094 employee's spread across 35 locations, Infotech caters to multiple industries & its clientele includes 22 Fortune 500 & 27 Global 500 blue chip organizations. Infotech established a 49:51 strategic JV with Pratt & Whitney for its associate aerospace engineering company. It operates in two segments: Data Transformation, Network & Operations (DNO) segment catering to utility, transportation & government verticals & contributes 35.2% of revenues while the Engineering (ENGG) segment addresses solutions in the engineering, manufacturing & industrial...

Background: Incorporated in 1991, Infotech is a mid cap IT Company with FY14 revenues of INR 22.1bn specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. With 12,094 employee's spread across 35 locations, Infotech caters to multiple industries & its clientele includes 22 Fortune 500 & 27 Global 500 blue chip organizations. Infotech established a 49:51 strategic JV with Pratt & Whitney for its associate aerospace engineering company. It operates in two segments: Data Transformation, Network & Operations (DNO) segment catering to utility, transportation & government verticals & contributes 35.2% of revenues while the Engineering (ENGG) segment addresses solutions in the engineering, manufacturing & industrial...

Engineering business continue to grow in the fourth consecutive quarter with north America region leading overall growth. Segments like Aerospace and defense, heavy machinery, consumer and medical industry delivery units performed significantly better than previous quarter. The Communications industry business showed a robust growth of 5% in Q4, driven mainly by the APAC region which grew in excess of 20% over the quarter. Management also believes that strong growth in the segment likely to continue in the upcoming period. Utility business declined for the quarter due to major project in US and moved steady for the period. Significant growth in the APAC and Europe region support the business segment the outlook for...

Background: Incorporated in 1991, Infotech is a mid cap IT Company with FY14 revenues of INR 22.1bn specializing in engineering solutions, including product development and life cycle support, process, network & content engineering. With 12,094 employee's spread across 35 locations, Infotech caters to multiple industries & its clientele includes 22 Fortune 500 & 27 Global 500 blue chip organizations. Infotech established a 49:51 strategic JV with Pratt & Whitney for its associate aerospace engineering company. It operates in two segments: Data Transformation, Network & Operations (DNO) segment catering to utility, transportation & government verticals & contributes 35.2% of revenues while the Engineering (ENGG) segment addresses solutions in the engineering, manufacturing & industrial...

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