Moneycontrol
Last Updated : Jul 13, 2018 01:25 PM IST | Source: Moneycontrol.com

Cyient down 4% on poor June quarter numbers

The company has reported 6 percent fall in its Q1 net profit at Rs 82.5 crore against Rs 87.8 crore in the same quarter of last fiscal.

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Share price of Cyient fell 4.5 percent intraday Friday on the back of weak June quarter (Q1FY19) numbers.

The company has reported 6 percent fall in its Q1 net profit at Rs 82.5 crore against Rs 87.8 crore in the same quarter of last fiscal.

Meanwhile, revenues of the company was up 19 percent at Rs 1080 crore against Rs 907 crore.

During the quarter ended June 30, 2018, the company allotted 3,11,380 equity shares of Rs 5 each, consequent to the exercise of the stock options by the associates of the company.

Earlier in this week, the company signed a definitive agreement to acquire the remaining 49 percent equity stake in Cyient Insights.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 875

Morgan Stanley has maintained overweight rating on Cyient with a target of Rs 875 per share.

The first quarter is weak, but FY19 guidance points to a strong recovery and continue to expect $ revenue growth of 13% over FY18-20, said Morgan Stanley.

In rupee terms research house expect EBITDA of 20 percent over FY18- 20.

Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 875

Credit Suisse has maintained outperform rating on Cyient with a target of Rs 875 per share.

According to Credit Suisse, the margin disappointed with about 200 bps QoQ decline in services margin, while a strong order backlog in key verticals provides the comfort.

The company’s margin guidance is unchanged despite sharp rupee depreciation. A soft start to FY19 may be a reason for conservative margin outlook, said Credit Suisse.

The research house feels that most of the key factors behind Q1's weak margin should reverse in Q2.

The stock trades at slightly below 16x FY20 PIE, which is relatively cheap. It cut FY19e earnings to account for Q1FY19 results.

Brokerage: Axis Capital | Rating: Buy | Target: Rs 850

Axis Capital has maintained buy rating on Cyient with a target of Rs 850 per share.

Despite weak first quarter company has maintained FY19 outlook. Axis Capital expect margin to recover from second quarter.

Brokerage: Edelweiss | Rating: Buy | Target: Rs 913

Edelweiss has maintained buy rating on Cyient and hiked price target to Rs 913 from Rs 785 per share.

June quarter results miss estimates due to anticipated slowdown in certain projects, while 2018-19 guidance maintained for revenue and profitability amid robust demand outlook, it said.

Expect dollar revenue growth rate of 11.9 percent over the fiscal 2018-2020, led by double-digit growth in A&D, turnaround in industrial and utilities, it added.

At 09:47 hrs Cyient was quoting at Rs 724.70, down Rs 17.30, or 2.33 percent on the BSE.

The share touched its 52-week high Rs 887.00 and 52-week low Rs 475.20 on 11 May, 2018 and 27 September, 2017, respectively.

Currently, it is trading 18.32 percent below its 52-week high and 52.46 percent above its 52-week low.

Posted by Rakesh Patil
First Published on Jul 13, 2018 09:51 am
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