Cyient DLM trading 183% higher than IPO price. Is it still a 'buy'? Here's what LKP Securities says
Cyient DLM, which hit the Indian secondary market on July 2023, have been maintaining a steady upward trend, rewarding their shareholders handsomely. During this period, the shares have jumped from ₹265 (IPO price) apiece to the current level of ₹751, translating into a gain of 183%.
The company is an integrated EMS company, which is one of the emerging sectors with a focus on the entire life cycle of a product. The company is placed in an exciting Indian EMS space that is at a nascent stage (0.6% of GDP in 2022), foresees longer tenure, and offers huge growth potential (expectations of 32% CAGR growth over CY21–CY26E).
In light of anticipated growth in the EMS sector, domestic brokerage firm LKP Securities in its recent note initiated coverage on the Cyient DLM with a 'buy' rating and set a target price of ₹851 apiece. Also Read: Amber Enterprises may invest ₹2,000 cr to set up printed circuit board facilityIt said that the global electronics market reached $2.5 trillion in CY21, with the electronic manufacturing services (EMS) sector accounting for $880 billion.
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