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...

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...

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...

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...

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...

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...

CYL's Q3FY21 consolidated revenue growth of 4.1% QoQ in CC was higher than our forecast. EBIT margin improvement of 14bps QoQ to 11.2% was a beat to our forecast of 9.7%. EPS of Rs8.7, +5.2%/33.1% QoQ/YoY was also a beat. CYL expects the QoQ growth in Q4FY21 to be at least similar to that in Q3FY21 with a relatively better growth from services business. Also, CYL is confident of Q4FY21 EBIT margin to see further QoQ improvement. We factor Q3FY21 beat and outlook for Q4FY21 and increase our FY21/22/23 revenue forecast (in US$) by 3%/3.5%/3.6% and EPS forecast by 8.1%/0.9%/4%. We now...

We recommend BUY and assign 14x P/E multiple to its FY23E earnings of Rs. 44.5 per share which gives a TP of Rs. 623 per share, an upside of 23%.

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...

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/-

While CYL's Q2FY21 consolidated revenue growth of 3.4% QoQ in US$ was in-line with our forecast, EBIT margin improvement of a whopping 590bps QoQ to 11% was a big beat to our forecast of 9.2%. EPS of Rs7.6, +3%/-14.8% QoQ/YoY was also a beat. CYL expects growth to improve in H2FY21 and expects low-teens YoY decline in revenue for FY21. It expects DLM to grow faster than the services segment. Also, CYL is confident of Q4FY21 EBIT margin being similar to that in Q2FY21. We factor EBIT margin beat in Q2FY21 and increase our FY21/22 EBIT margin by 80bps/125bps to 9.2%/11.4% and also increase EPS by ~8% for both the years. We...

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

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%...

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....

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.