Accumulate Cyient DLM; target of Rs 546: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Cyient DLM with a target price of Rs 546 in its research report dated April 24, 2025.

Broker Research

April 24, 2025 / 12:03 IST

Accumulate

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Cyient DLM

We cut our FY26/FY27E EPS estimates significantly by 23.5%/21.1%, due to continuous reduction in order book, no clarity of replacement of BEL contract and weaker than expected execution. However, double digit margin reported even after excluding the one off in Q4FY25, CYIENTDL is confident to report 10%+ EBITDA margin in FY26. We have revised TP to Rs546 (Rs692 earlier), based on 30x FY27E earnings and downgrade our recommendation to ‘Accumulate’ from ‘BUY’. CYIENTDL defense segment got impacted due to completion of contract from domestic client, with the order book declining 12% YoY to Rs 19bn. However, company remains positive about securing robust orderbook from Q2FY26 onwards mainly from International clients. The management indicated that the contracts secured from Boeing Global Services and Deutsche Aircraft and one logo addition in industrial segment, expected to bring growth in order flow, which will be visible from H2FY26.

Outlook

We estimate FY25-27E revenue/EBITDA/PAT CAGR of 21.1%/31.2%/45.6%, with EBITDA margin expansion of ~160bps. Downgrade to ‘Accumulate’.

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