ICICI Securities has given Buy recommendation for Cyient with a target price of Rs. 1138 in its research report issued on Apr 26, 2022

ICICI Securities research report on Cyient

Cyient has announced its intent to acquire Citec, a leading plant and product engineering services company in the Nordic region serving customers in energy (gas and renewables) and mining industries, for EUR94mn (~US$101mn). Citec’s revenues of EUR80mn (~US$86.3mn) are equivalent to 14% of Cyient’s FY22 revenues. Citec’s enterprise value is EUR94mn (~US$101.36mn). This translates to just 1.2x of Citec’s CY21 revenues and 6.3x CY21 EBITDA (reported), which is fairly priced in our view. Debt (~EUR27mn) on Citec’s book will be retired prior to completion of the acquisition and is included in the total cost of EUR94mn. Cyient has total cash of ~Rs1.2bn on its books.


We revise upward our EPS estimates by ~3%/8% for FY23E/FY24E. We continue with our BUY rating for Cyient and value the company at 18x FY24E EPS of Rs63, arriving at a target price of Rs1,138 (earlier: Rs1,037).

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