Cyient Ltd. share price target

Cyient-DET reported a miss on revenue growth and margin in Q4, exiting FY25 with a full-year 3% YoY CC decline, steeper than its (-2.7%) guidance. Transportation vertical’s decline was cushioned by some traction in the aerospace sub-vertical and sustainability.

Cyient reported weak operating performance in DET, in Q4. DET revenue degrew 3.0% QoQ (1.9% cc) to USD170mn. DET EBITM declined by 48bps QoQ to 13.0%, lower than our estimate.

DET business reported 3QFY25 revenues of USD175m, up 2.4% QoQ in CC vs. our estimate of 2.3% growth. Cyient reported broad-based growth in revenues across verticals, except Sustainability (down 1.3% QoQ cc).

Cyient posted inline revenue performance in DET in Q3, while EBITM missed estimates. DET revenue grew 1.3% QoQ (2.4% CC) to USD175.2mn. DET EBITM declined by 70bps QoQ to 13.5%, coming in below our estimate.

With 2% q/q growth (1.3% in CC),aided by broad-based growth across verticals, Cyient’s Q2 was in line with estimates. Sustainability, however, declined a steep 6.4% sequentially (-2.2% y/y) in CC.

With limited growth potential due to first-quarter impact, we recommend a HOLD recommendation on the stock.

DET business reported 2QFY25 revenues of USD173m, up 1.3% QoQ in CC vs. our estimate of 1.0% growth. Cyient reported broad-based growth in revenues across verticals, except Sustainability (down 6.45 QoQ cc).

With limited growth potential due to first quarter impact, we recommend HOLD recommendation on the stock.

CYL reported a broad-based decline in revenues across verticals in 1QFY25. DET business revenue declined 5.0% QoQ in CC vs. our estimate of a 1.5% fall.

With strong growth potential backed by robust deal wins and superior execution capabilities, we maintain our BUY recommendation on the stock.

Cyient reported a weak operating performance in Q4FY24. DET revenue grew
0.1% QoQ (decline of 0.5% cc), falling short of our estimate of 1.4% QoQ
growth.

We recommend a BUY rating on the stock with a near term TP of Rs 2460, implying an upside of 12% from CMP.