Hold Cyient; target of Rs 1210: ICICI Direct

hold

ICICI Direct's research report on Cyient

Cyient Ltd (Cyient) offers engineering & development services to aerospace & defence, transportation, E&U, communication and others. Cyient has 300 customers across 14 countries • Net debt free and healthy cash flow with OCF/EBITDA ~80%. Cyient reported strong Q4 results. Consolidated services grew 3.2% QoQ in CC terms with organic contribution of 2.6% • Normalised group EBIT margins at 14.2% while services margins at 15.1%, up 117 bps QoQ but down 27bps YoY. Order intake declined 10.3% QoQ to US$212.7 million (mn).

Outlook

We change our rating on the stock from BUY to HOLD. We value Cyient at Rs 1210 i.e., 16x P/E on FY25E EPS.

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Cyient - 24 -04 - 2023 - icici