Reduce Cyient; target of Rs 1190: Choice Equity Broking

Choice Equity Broking's report on Cyient

CYL is navigating a strategic reset, focusing on DET margin recovery, semiconductor scale-up and DLM momentum, supported by operational efficiencies and technology acceleration. Q2FY26 highlighted 12% QoQ semiconductor growth, steady traction in transportation and networks and resilient margin despite cost pressure. While near-term macro uncertainty persists, leadership depth and strategic initiatives support medium-term growth.

Outlook

We value the company using a SoTP approach, arriving at a TP of INR 1,190, based on a target multiple of 15x applied to FY27–FY28E DET EPS (Refer Page 2). We upgrade the stock to REDUCE from SELL, noting a potential re-rating if execution sustains.