Prabhudas Lilladher's research report on Cyient
Cyient reported beat in revenue growth of +5.2% QoQ USD (Ple: 4.2%, Cons: 5%) led by higher than expected growth in both Services +3.6% QoQ USD (Ple:3%) and DLM business +12.8% QoQ USD. (Ple: 10%). Revenue guidance of double digit growth in Services remains intact given strong order intake, backlog and deal pipeline (+27% YoY). DLM growth guidance is reduce to low single digit from 15-20% earlier because of order fulfillment challenges due to unavailability or long lead times for semiconductor components. This lost revenue is expected to be realized in future quarters, however it may take 12- 15 months for supplies to normalize.
We anticipate 16% revenue CAGR & 19% EPS CAGR for FY22-24E. We continue to value Cyient on 22x to arrive at a TP of INR 1293 (earlier INR 1301) on Sep-23 EPS of INR 58.8. Cyient is currently trading at 17.8/15.6x on FY23/24 earnings of INR 54.9/62.7 respectively. It is trading at significant discount of 60%/78%/68% to LTTS/Tata Elxsi/KPIT on FY23 consensus valuations. Maintain BUY!
At 15:46 hrs Cyient was quoting at Rs 912.55, up Rs 3.10, or 0.34 percent.
It has touched an intraday high of Rs 948.00 and an intraday low of Rs 911.90.
It was trading with volumes of 21,192 shares, compared to its thirty day average of 22,911 shares, a decrease of -7.50 percent.
In the previous trading session, the share closed down 2.33 percent or Rs 21.70 at Rs 909.45.
The share touched its 52-week high Rs 1,292.00 and 52-week low Rs 583.80 on 19 October, 2021 and 28 January, 2021, respectively.
Currently, it is trading 29.37 percent below its 52-week high and 56.31 percent above its 52-week low.Market capitalisation stands at Rs 10,063.76 crore.
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