Reduce Cyient; target of Rs 1150: Emkay Global Financial

Emkay Global Financial recommended reduce rating on Cyient with a target price of Rs 1150 in its research report dated December 18, 2025.

Broker Research

December 19, 2025 / 11:26 IST

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Emkay Global Financial' research report on Cyient

Cyient Semiconductors, a wholly-owned subsidiary of Cyient, has signed a definitive agreement for acquiring majority stake exceeding 65% (with full control expected by the end of four years) in Kinetic Technologies—leader in power management as well as high-performance analog and mixed-signal ICs— for a total consideration of USD93mn (~3x P/S on CY24 basis vs median multiple of ~5x). The transaction is expected to be EBIT-accretive from FY27 and EPS-accretive from FY28. The acquisition aims to enhance Cyient's presence in power ICs for Edge AI and high-performance computing, and will thereby help it build India’s first ASIC-led custom power semiconductor company. The deal is set to more than double Cyient Semicon’s revenue, with Kinetic’s EBITDAM expected to log above the typical services margin over the medium term.

Outlook

We have not yet factored the acquisition into our earnings estimates, pending deal closure. We maintain REDUCE on Cyient, with TP of Rs1,150, valuing the DET business at 15x Sep-27E and the DLM business at 20% discount to the CMP.

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