Buy Cyient; target of Rs 1555: Choice Equity Broking

Choice Equity Broking's report on Cyient

Cyient presented a cautious outlook owing to demand uncertainties from macroeconomic challenges further it faces near term headwinds due to management transition & its significant exposure to US of 51%, limits the scope for a sharp rebound. However, with a 35% stock correction since January, most negatives are likely priced in. As the environment improves, a potential recovery seems likely.

Outlook

Given these factors, we marginally lower our estimates by 4%, projecting Revenue/EBIT/PAT to grow at a CAGR of 5.4%/14.0%/17.9% over FY25–27E and maintain our rating to BUY but lower the target price to INR 1,555, implying a 20x PE on FY27E EPS of INR 77.8.