BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Cyient Ltd. 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 €94 million (~$101 million).
Citec’s revenues of €80 million (~$86.3 million) are equivalent to 14% of Cyient’s FY22 revenues. Citec’s enterprise is €94 million (~$101.36 million).
This translates to just 1.2 times of Citec’s CY21 revenues and 6.3 times CY21 Ebitda (reported), which is fairly priced in our view.
Debt (~€27 million) on Citec’s book will be retired prior to completion of the acquisition and is included in the total cost of €94 million. Cyient has total cash of ~Rs 1.2 billion on its books.
Cyient is heavily concentrated towards aerospace, rail transportation and communication. The acquisition will diversify its presence in energy, industrial and plant engineering, which currently accounts for only ~2% (less than $10 million) of Cyient’s revenues and thus reduces cyclicality at overall portfolio level.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR