Cyient DLM Share Price Erases Loss Announcing US-Based Company Acquisition

Cyient DLM Ltd.'s share price erased loss on Friday, after it informed the exchanges about acquiring US-based Altek Electronics Inc. to widen its reach in the North American markets, and diversify its client base. Altek Electronics is a prominent electronic manufacturing services company with its reach in medical, industrial, and healthcare sectors, Cyient DLM said in an exchange filing.

With this acquisition, Cyient DLM's manufacturing capacity increased to 80,000 square feet area, which will aid the company to cater to its client globally, the filing said. Altek Electronics has a certification from International Traffic and Arms Regulation, which will enhance Cyient DLM's position to cater to the US defence market.

Through this acquisition, Cyient DLM expands its foot print in medical, healthcare, and industrial sectors. The company also intends to benefit from its diverse client base. Altek Electronics' acquisition adds a number of Fortune 500 companies into Cyient DLM's client base, it said in the exchange filing.

Cyient DLM Share Price

Cyient DLM share price rose 1.94% to Rs 704.00.

Cyient DLM's share price rose 1.94% before paring gains to trade 0.62% higher at Rs 694.85 as of 10:16 a.m., compared to a 0.23% decline in the NSE Nifty 50.

The stock has gained 5.89% in 12 months, and 3.16% year-to-date. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 46.13.

Out of seven analysts tracking the company, six maintain a 'buy' rating, and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 24.4%.

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