Buy Cyient; target of Rs 620: Motilal Oswal
Motilal Oswal is bullish on Cyient has recommended buy rating on the stock with a target price of Rs 620 in its research report dated April 20, 2017.
Motilal Oswal's report on Cyient
Cyient’s (CYL) 4QFY17 revenue grew 3.8% QoQ (+3.6% QoQ in constant currency) to USD141m, marginally above our estimate of USD140m. Services business grew 3.3% QoQ and included USD0.8m in revenue from recently acquired Certon, implying organic growth of 2.7%. Rangsons grew by 8% QoQ to USD16m, falling short by USD4m on its 50% growth target of USD59m for FY17.
At current momentum, we expect CYL to continue leading industry growth (13% YoY CC in FY18E), and over the longer term, it remains well placed to address opportunities in the Engineering and Defense segments. Our price target of INR 620 discounts FY19E earnings by 14x. Buy.
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