Cyient stock more than doubled investor wealth in less than a year; should you buy?

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Also Read: Nuvama bullish on tier-2 IT stocks, LTIMindtree among its top picks; here's why The brokerage said the management’s strategy has resulted in 15–18% YoY growth in key accounts, a 30.2% c/c YoY increase in order intake (ttm basis), and US$100 million in large deal signings in 1HFY24, with the large deal pipeline remaining at a historical high. Cyient is transitioning to a customer-obsessive organisation, strengthening CXO connections, and positioning itself as a strategic partner for clients in their digital transformation journey through its DTAG (Digital & Technologies Advisory Group), Kotak highlighted.

Also Read: Elara Capital suggests moving back to financials from IT, gradually – here's why The brokerage underscores Cyient's hyperscaler partnerships and a portfolio of over 50 IP/accelerators, expecting these to drive growth and enhance productivity. According to the brokerage, a few verticals have stronger demand tailwinds compared to others, and revenue growth would be heterogeneous across verticals.

These include aerospace, automotive (enabled by semiconductor capabilities), energy, and mining industries, which should outperform in the next three years. However, it said the telecom, healthcare, and rail sectors will demonstrate moderate growth.

On the margin front, the brokerage sees multiple levers for profitability enhancement. It said that improved employee productivity, pricing adjustments, and operational efficiencies are expected to drive near-term margin improvements.

Also Read: IT cos pray for succour in H2 Highlighting Cyient's offshoring dynamics, the brokerage notes a moderated offshoring revenue mix, currently at 44.2%. The company aims to increase this above 50% in the medium term, with a