Anand Rathi's research report on Cyient
Cyient’s Services at $131m (up 1.2% q/q, 9% y/y) had its ups and downs in the year but grew 9.2% in FY22. The company is now aiming at 15% growth in FY23, catching up with peers like LTTS (guided to 15.5%). Services order intake was $188m, taking TTM to $632m, up 14% y/y. DLM at $26m (down 14% y/y) continues to face challenges, expected to grow <10% in FY23 (FY22: 9%). The 14.5% EBIT margin was up 59bps q/q, 180bps y/y, with attrition softening a bit to 27%.
Outlook
No meaningful change in estimates but we revise our target to Rs1,250 (from Rs1,460), at 21x FY24e EPS, a discount to peers reflecting patchy growth. We retain a Buy.
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