Cyient is Axis Securities' ‘pick of the week’ – 4 key reasons why
Cyient as its 'top pick of the week'. This is on the back of accelerating demand for ER&D services, new growth areas, and robust order intake for core services (DET). The brokerage has a ‘buy’ call on the stock with a target price of ₹2,460, implying a potential upside of 13.5 percent from its current market price of ₹2,166.40 (as on February 13, 2024).
Cyient Ltd. (Cyient) is a global digital engineering and technology solutions company established in 1991 in Hyderabad India. Cyient collaborates with its customers to design digital enterprises, build intelligent products and platforms and solve sustainability challenges.
The company has a strong presence in Europe, the US and other geographies. The stock has surged over 144 percent in the last 1 year and 6.5 percent in February so far after a 14 percent drop in January. Currently trading at ₹2,166.40, the stock is 12 percent away from its record high of ₹2,457.00, hit on December 22, 2023.
Meanwhile, it has soared over 144 percent from its 52-week low of ₹887.00, hit on February 13, 2023. In the December quarter, Cyient reported a lower-than-expected quarterly profit, which is a drop of 2 percent to ₹153 crore. The firm said the drop in the company's consolidated net profit is due to higher employee costs and narrowed the revenue growth outlook for its largest business unit.
Consolidated revenue from operations for Cyient rose 12.5 percent to ₹1,821 crore for the quarter on the back of growth in the sustainability and transportation verticals. Cyient also narrowed its full-year outlook for revenue growth in its digital, engineering and technology (DET) unit to 13-13.5 percent from 15-20 percent. Accelerating demand for ER&D services: Axis Securities noted that digital
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