Motilal Oswal recommended Neutral rating on Cyient with a target price of Rs 320 in its research report dated July 17, 2020.
Motilal Oswal 's research report on Cyient
Cyient's 1QFY21 performance suggests revenue impact was not as bad as anticipated earlier. While demand-side challenges persist in some verticals, management indicated supply-side issues should not be a bottleneck going forward. Outlook on growth from 2QFY21 is much better than previously expected. As growth recovers and some of the restructuring costs are behind, margins should report sharp expansion over 2HFY21. We upgrade our FY21/FY22E EPS estimates by 25% on a better-than-expected revenue and margin outlook. We await further evidence on execution/margin management before turning constructive on the stock.
Our Target Price is based on 9x FY22E EPS. We await further evidence on execution/margin management before turning constructive on the stock.
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