Motilal Oswal has given Buy recommendation for Cyient recommended buy rating on the stock with a target price of Rs 810 in its research with a target price of Rs. 810 in its research report issued on Apr 23, 2021
Motilal Oswal’s research report on Cyient
CYL’s 4QFY21 revenue growth at 6% QoQ in USD terms (in line with our estimate) was led by a 16.4% increase in DLM (seasonal rebound in Aerospace and Defense) and 3.7% QoQ (2.5% QoQ organic) growth in the Services business. The management guided at double-digit growth in FY22 (DLM to grow over 20% YoY), despite a decline in 1QFY22, on seasonality in DLM. Services is expected to post double-digit growth in FY22.
Given the in line operating performance, we have kept our estimates largely unchanged. We maintain our Buy rating on attractive valuations. Our target multiple of 16x FY23E EPS takes our TP to INR810/share, implying an upside of 18%.