Deven Choksey's research report on Cyient DLM
Cyient DLM’s Q1FY26 performance was a sharp miss to our estimates, led by a decline in defense segment, driven by completion of a order from a large customer last year. The miss was across the board with revenue, EBITDA and net profit stood below our estimates. Q1FY26 revenue grew marginally by 8.0% YoY (-35.0% QoQ) to INR 2,784 Mn., despite in-organic revenue (i.e., from Altek’s acquisition) being absent in Q1FY25. The revenue stood sharply below our estimates (-16.9%), led by a sharp decline in the defence segment, following the completion of a large order in FY25. Additionally, geopolitical tensions in the Middle East (Israel-Iran conflict) disrupted supply chains, impacting deliveries and top-line execution.
Outlook
We have roll forwarded our valuation basis to Jun’27 estimates. We value Cyient DLM at 28.0x June-27 EPS, implying a target price of INR 512. We reiterate our “BUY” rating on the stock.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
