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Last Updated : Sep 18, 2018 03:36 PM IST | Source: Moneycontrol.com

Buy Cyient; target of Rs 913: Edelweiss

Edelweiss bullish on Cyient has recommended buy rating on the stock with a target price of Rs 913 in its research report dated July 12, 2018.

 
 
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Edelweiss' research report on Cyient


Cyient reported Q1FY19 revenue of USD160.8mn (down 2.3% QoQ) versus Street’s estimate of a 1.3% decline. EBITDA margin at 12.2% (down 190bps QoQ) is lower than the expectation of 13.5%. Management attributed the miss to the anticipated slowdown in certain projects, but maintained the FY19 guidance for revenue and profitability amid robust demand outlook. Key highlights: 1) services revenue inched up 1.1% QoQ (in cc terms); 2) Aerospace & Defence (A&D) returned to double-digit growth; 3) the communication business faced a challenging quarter, but healthy growth is likely to return on the back of a strong pipeline; 4) margins undershot owing to certain one-offs and are likely to recover.


Outlook


Cyient’s superior services portfolio (ER&D) along with a robust demand environment and significant sector tailwinds underpin our higher target multiple of 18x (16x earlier). Maintain ‘BUY’ with a revised TP of INR913.


For all recommendations report, click here


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First Published on Jul 13, 2018 05:00 pm
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