Get App
Download App Scanner
Scan to Download
Advertisement

Cyient Gets Higher Target Price From PL Capital, But Execution Remains Key — Check Upside, Rating

Motilal Oswal believes that the pivot towards managing lifecycle engineering can structurally improve the quality of Cyient's revenue; however, the key monitorable remain the success rate and execution within its marquee accounts.

Cyient Gets Higher Target Price From PL Capital, But Execution Remains Key — Check Upside, Rating
In the long term, Cyient targets industry-leading revenue CAGR, driven by a larger contribution from lifecycle and recurring revenues.
(Photo: NDTV Profit/ AI generated image)
STOCKS IN THIS STORY
Cyient Ltd.
--

NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

PL Capital Report

PL Capital has maintained its 'Hold' rating on Cyient Ltd. with a target price of Rs 1,040, based on the SOTP methodology, and has revised its target price to Rs 1,040 from Rs 900.

In its Investor Day, the management outlined its strategy to pivot from project-led ER&D toward lifecycle engineering and annuity-based models, with the objective of improving predictable and quality revenues, and the brokerage believes that the pivot towards managing lifecycle engineering can structurally improve the quality of Cyient's revenue; however, the key monitorable remain the success rate and execution within its marquee accounts. 

Additionally Cyient aspires to drive more annuity-based arrangements by-

  1. offering a breadth of service portfolio,
  2. having established senior leaders to dedicated business units and
  3. fixing internal constraints to drive better execution.

ALSO READ: Stock To Buy: Pitti Engineering In Focus As Axis Securities Turns Bullish — Check Target Price

 Though the brokerage have not integrated Tao Digital's financials, as the acquisition is yet to be completed and have largely maintained its FY27E and FY28E DET USD revenue growth estimates, while marginally increasing its Ebitmargin estimates to 13.5% and 14.0% (13.2% and 13.7% earlier), respectively.

Click on the attachment to read the full report:

Pl Capital Cyient.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

To continue reading this story
You must be an existing Premium User

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search
Add NDTV Profit As Google Preferred Source
Loading PDF...
Listen to the latest songs, only on JioSaavn.com