Cyient DLM shares climb over 8% after Q2 profit zooms 106% YoY
Cyient DLM shares rallied 9% to Rs 748 in Tuesday's trade on BSE after the firm reported a net profit of Rs 14.6 crore in Q2FY24, which jumped 106.4% compared to Rs 0.71 crore in the corresponding period of FY22-23.
Its revenue from operations climbed 71.5% year-on-year (YoY) at Rs 291.8 crore in the September quarter of FY 23-24, compared to Rs 171.55 crore. However, the EBIDTA was not up to the level as the firm reported Rs 23.5 crore during the Q2FY23-24, while the margin dropped 571 bps YoY.
Following the Q2 results, brokerage firm Motilal Oswal said, «Cyient DLM reported robust revenue growth of ~72% YoY in 2QFY24, led by strong traction in the Aerospace and Defense vertical.
Margins were under pressure during the quarter (EBITDA margins declined 580bp YoY) due to an unfavorable business mix, one-time gains in 2QFY23 and relatively higher employee expenses.»
«We maintain our FY24/FY25/FY26 EPS estimates and retain our Buy rating on the stock with a target price of Rs 870 (35x FY26E EPS),» Motilal said.
As per Trendlyne data, the average target price of the stock is Rs 840, which shows an upside of 19% from the current market prices. The consensus recommendation from three analysts for the stock is a 'Strong Buy'.
Technically, the stock's day RSI (14) is at 58.7.
The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. The day MACD (12, 26, 9) is at 14.5, which is above its Center Line, but below the signal line.
Cyient DLM's shares are currently trading above their 5-day, 10-day, 20-day, 30-day and 500-day Simple Moving Averages (SMA).
Cyient DLM offers end-to-end (E2E) manufacturing, assembly and repair capabilities and re-engineering services with a focus on sectors like
