Moneycontrol
Apr 21, 2017 03:27 PM IST | Source: Moneycontrol.com

Buy Cyient; target of Rs 605: Edelweiss

Edelweiss is bullish on Cyient has recommended buy rating on the stock with a target price of Rs 605 in its research report dated April 20, 2017.

Buy Cyient; target of Rs 605: Edelweiss

Edelweiss' report on Cyient


Cyient’s Q4FY17 revenue, at USD141.0mn (up 3.8% QoQ), was ahead of Street’s 3.2% growth estimate. EBITDA margin, at 13.3% (down 10bps QoQ), was lower than Street’s 13.8% estimate. Management has guided for 12.5% revenue growth and 50bps margin expansion for FY18 leading to double-digit earnings growth.


Outlook


We remain positive on the stock given its significantly better growth profile versus peers due to exposure to the Engineering Research & Development (ER&D) & IoT segments. Maintain ‘BUY’ with a revised target price of INR 605 (INR 620 earlier) as we change USD rates to INR 67 from INR 69.


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