Buy Cyient DLM; target of Rs 870: Motilal Oswal

Motilal Oswal's research report on Cyient DLM

CYIENTDL reported robust revenue growth of ~72% YoY in 2QFY24, led by strong traction in the Aerospace and Defense vertical. Margins were under pressure during the quarter (EBITDA margins declined 580bp YoY) due to an unfavorable business mix, one-time gains in 2QFY23 and relatively higher employee expenses. We maintain our FY24/FY25/FY26 EPS estimates and retain our BUY rating on the stock with a TP of INR870 (35x FY26E EPS).

Outlook

We maintain our FY24/FY25/FY26 EPS estimates and retain our BUY rating on the stock with a TP of INR870 (35x FY26 EPS).