The brokerage firm, Motilal Oswal has retained its “Buy” rating on Cyient DLM’s stock, setting a target price of Rs 700. According to them, the company’s consistent growth in key verticals and has potential to attract large global clients in the near future.
Motilal Oswal on Cyient DLM
Motilal Oswal has revised its earnings estimates for Cyient DLM, reducing projections for FY25, FY26, and FY27 by 14%, 25%, and 26%, respectively. The revision comes after the ongoing challenges in order flows, lower margins, and uncertainties around securing large orders in the near term.
“The softness in order flows, lower margins due to unfavorable operating leverage, and uncertainty around large order inflows in the near term have prompted us to revise our estimates,” the brokerage in its report said.
However, the brokerage remains confident about the company’s long-term potential. “We retain our BUY rating on the stock with a target price of Rs 700, valuing it at 31x FY27E EPS,” added the brokerage firm in its report.
Looking ahead, the integration of Altek is expected to provide a significant boost. For Q4FY25, Motilal Oswal estimates 38% growth in consolidated revenue and a 47% rise in EBITDA, highlighting the potential impact of recent acquisitions.
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Cyient DLM announced its Q3 results on January 21. In the Q3FY25, the company reported a 38.38% YoY growth in revenue, which stood at Rs 444.24 crore.
However, profit declined 40.4% YoY to Rs 10.99 crore, reflecting margin pressures. On a QoQ basis, revenue saw a 14.07% increase, but profit dropped 28.87%.
Cyient DLM Vs Nifty 50
The share price of Cyient DLM has struggled compared to the benchmark indices Nifty 50. Cyient DLM share price today closed at Rs 511.10.
Over the last 5 days, the share price of the company dropped by 14.96% and in the past six months, the stock declined by 31.95%. On a yearly basis, it is down by 21.14%.
In comparison, the Nifty 50, the index 0.10% in the last five days and 5.23% over six months, while posting an annual gain of 9.23%.
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