Cyient Ltd. share price target

Cyient announced its acquisition of Celfinet, a Portugal-based international wireless engineering services company focused on providing end-to-end ‘network planning and performance optimization’ services. With this acquisition, Cyient aims to strengthen its wireless engineering practice to support communication service providers (CSPs) and enterprises in deploying their pervasive connectivity networks at scale.

We recommend a BUY on the stock and assign a 17x P/E multiple to the company's FY24E earnings of Rs 60.0/share to arrive at A TP of Rs 1,000/share, implying an upside of 11% from CMP.

Cyient has announced its intent to acquire Citec, a leading plant and product engineering services company in the Nordic region serving customers in energy (gas and renewables) and mining industries, for EUR94mn (~US$101mn). Citec’s revenues of EUR80mn (~US$86.3mn) are equivalent to 14% of Cyient’s FY22 revenues. Citec’s enterprise value is EUR94mn (~US$101.36mn).

We recommend a BUY on the stock and assign a 17x P/E multiple to the company's FY24E earnings of Rs 60.0/share to arrive at A TP of Rs 1,000/share, implying an upside of 20% from CMP.