Cyient Ltd. share price target

Cyient Ltd, formerly known as InfoTech Enterprises, is one of the leading players in the IT enabled services space providing services to the Engineering Research and Development segment. In Q4FY21, consolidated $ revenue reported a growth of 6.0% QoQ, and 0.4%YoY. This is largely driven by growth witnessed in the Energy & Utility (E&U;) and communication verticals. EBIT margin (excluding exceptional item) stood at 12.6%, an increase of 148bps QoQ, highest in last eight quarters...

Won 8 large deals with TCV potential of $91 mn. Order-intake was robust in Q4 FY21 at $238 Mn, +22.4% QoQ. Cyient reported strong beat in revenue growth (+6% QoQ USD) led by strong demand momentum in DLM (+16.4% QoQ USD) and broad-based recovery in...

The company has seen healthy traction in aerospace, energy & utility vertical and communication segment in Q4FY21. In addition, Cyient expects Q1FY22E services revenues to register improved growth on a QoQ basis. Further, for FY22E, the company expects improved demand from aerospace in H2FY22E, traction in communication (led by 5G rollout (10% of revenues), cloudification and enterprise network transformation), energy & mining and transportation. This, coupled with focus on large deals (won eight large deals in Q4FY21), healthy order book, traction DLM business (led by strong...

CYL's 4QFY21 revenue growth at 6% QoQ in USD terms (in line with our estimate) was led by a 16.4% increase in DLM (seasonal rebound in Aerospace and Defense) and 3.7% QoQ (2.5% QoQ organic) growth in the Services business. The management guided at double-digit growth in FY22 (DLM to grow over 20% YoY), despite a decline in 1QFY22, on seasonality in DLM. Services is expected to post double-digit growth in FY22. CYL's 4QFY21 revenue growth at 6% QoQ in USD terms (in line with our estimate) was led by a 16.4% increase in DLM (sesonal rebound in...

We recommend a BUY rating and assign an 18x P/E multiple to its FY23E earnings of Rs 45.4/share to arrive at a TP of Rs 800/share, implying an upside of 16%.

CYL's Q4FY21 consolidated revenue growth of 4.7% QoQ in CC was in-line with our forecast. EBIT margin improvement of ~150bps QoQ to 12.6% was a beat to our forecast of 11.8%. Recurring EPS of Rs10.1, +16%/+47% QoQ/YoY was also a beat. For FY22, CYL has guided for a double-digit YoY growth in services business and 20%+ growth for DLM. Further, it has guided for ~200bps YoY improvement in consolidated...

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 the majority of positives seem to have factored in the current valuation. We revise our rating to Hold from Accumulate...

We recommend a BUY on Cyient Ltd with a Target Price of Rs 543, an upside of ~6% from CMP of Rs. 511 and Stop Loss Rs 450.

Cyient reported strong revenue growth of 4.7% QoQ led by strong growth in DLM business (+24.8% QoQ). With strong large deal wins of potential size of $106 Mn, Cyient is on path to deliver consistent growth in coming quarters back by strong deal wins. 3Q deal TCV is $106 mn and pipeline remains healthy across all segments except commercial aerospace. Cyient is seeing strong traction in areas such as digital engineering, embedded electronics, remote telemetry, IoT, power electronics, medical devices, EV triggered by the pandemic. Under leadership of new CEO, sales rigor, revenue...