Updated April 25th 2025, 12:34 IST
Cyient Share Price Target 2025: Cyient, a leading provider of intelligent engineering and technology solutions, has reported a decline in its consolidated net profit for the quarter ending March, with a decrease of more than 5%, down to Rs 186.4 crore from Rs 196.9 crore a year earlier.
Despite a 3% increase in total income, which rose to Rs 1,950.2 crore from Rs 1,884.2 crore, the company's overall performance in Q4 faced challenges.
Cyient Ltd's stock was trading at Rs 1149.20, showing a significant decline of Rs 93.85, or 7.55%, from its previous close of Rs 1243.05.
The stock opened at Rs 1175, reached a high of Rs 1192.40, and touched a low of Rs 1125.40 during the trading session.
The company’s Digital, Engineering, and Technology (DET) segment, which is a key focus area, saw a 1.2% decline in revenue to Rs 1,472 crore. The net profit from this segment decreased by 6% to Rs 163 crore compared to the previous year. For the fiscal year, Cyient's DET net profit dropped by 12.2%, with a 1.6% decline in revenue, totalling Rs 5,816 crore.
Cyient experienced weak operating performance in its DET segment during Q4, with a 3% Qoq (1.9% constant currency) drop in revenue to USD170 million. The EBIT margin for the DET business also contracted by 48 basis points QoQ to 13%, falling short of estimates. The company attributed the decline to macroeconomic uncertainties that negatively impacted demand in the latter part of Q4.
Cyient’s management lowered its margin expectations for the DET segment to around 15% in the next 24 months, down from the previous forecast of 16% by Q4 FY26. The company also announced that it would temporarily halt guiding due to leadership transitions and the evolving semiconductor business.
Emkay has revised its earnings projections for FY26/27, lowering the EPS estimates by 8-10% following the weak Q4 results. Consequently, the research firm has maintained a "REDUCE" rating on the stock, lowering the target price by about 7% to Rs 1,270. This valuation is based on a 16x multiple for the DET business (March 2027 estimates) and a 20% discount for the DLM business.
Cyient is also focusing on its new semiconductor subsidiary, Cyient Semiconductors, with Suman Narayan appointed as CEO. Additionally, the company is restructuring its Sustainability segment into three divisions: minerals & mining, energy, and utility & geospatial.
The stock has displayed mixed performance, with a 3.62% drop in the past week, a modest 0.10% gain over the past two weeks, and a significant 11.88% decline in the past month. In the past three months, it has dropped by 14.77%, while year-to-date it has fallen by 36.56%. Over the last six months, it has declined by 36.19%, and over the past year, it has lost 40.15%.
However, over two years, it has only decreased by 1.16%, with a notable 26.60% increase over the past three years. The stock has shown an impressive growth of 439.09% over the last five years, while over the last decade, it has grown by 131%.
Over the past 52 weeks, the stock has seen a high of Rs 2,156.35 and a low of Rs 1,050.20. Its market capitalisation stands at Rs 12,760.59 crores.
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Published April 25th 2025, 12:34 IST