Shares of Cyient Ltd. rallied in the final hours of trade on Friday after JPMorgan upgraded their call on the company to 'overweight', with the target price of Rs 1,750 apiece indicating a potential upside of 28%.
The brokerage believes the sharp 22% correction in Cyient's stock since Jan. 23 has created a buying opportunity, especially as the Nifty IT index has dipped just 1% in the same period.
The key trigger? A new CEO announcement by March-end. While the market is concerned about an internal candidate taking charge—potentially continuing past issues in guidance—JP Morgan argues that the current stock price already factors in this risk. If an external CEO is appointed, the brokerage sees significant re-rating potential.
JP Morgan sees limited downside as the stock is already near its bear-case valuation. Cyient has also recorded its highest-ever deal wins, as per the note, boosting revenue visibility.
JPMorgan forecasts 5% revenue growth and a 50 basis points margin expansion in the coming fiscal. Cyient is trading at a 55% discount to its peers, making it the cheapest stock in the IT and ERD space, noted JPMorgan.
Cyient Share Price Data Today
The scrip rose as much as 8% to Rs 1,471.50 apiece, the highest level since Jan. 24, 2025. It pared gains to trade 6.56% higher at Rs 1,452 apiece, as of 02:50 p.m. This compares to a 1% advance in the NSE Nifty 50 Index.
It has fallen 26.45% in the last 12 months. Total traded volume so far in the day stood at 1.66 times its 30-day average. The relative strength index was at 29.42.
Out of 24 analysts tracking the company, 11 maintain a 'buy' rating, six recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 21.6%.
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