Geojit's research report on Cyient
Cyient Ltd., formerly known as Infotech Enterprises, is one of the leading players in the IT-enabled services space, providing services to the Engineering Research and Development segment. In Q4FY23, consolidated revenue grew by 48.3% YoY due to sturdy growth in the services segment. The revenue from consolidated services grew by 47.3% YoY, driven by Transportation and Sustainability verticals. EBIT margin lowered by 21bps to 14.2% due to amortisation costs of acquisitions, but was partially offset by favourable revenue mix and price hikes, and PAT improved by 5.8% YoY at Rs.163.2cr. The company's deal wins remain strong, and its full-year order intake of $720.5 million enhances revenue visibility for FY24. Healthy growth prospects across verticals, strong deal wins, promising FY24 revenue guidance growth could bolster company’s future performance. The margin is expected to improve in FY24E on automation and cost-control measures.
Outlook
However, given the concern over global uncertainties and fear of recession, we downgrade our rating to "Accumulate" with a target price of Rs. 1,360 based on 18x FY25E EPS.
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