Cyient DLM shares rise 13% on Q4 earnings, here are fresh price targets

JM Financial has assigned a price target of Rs 887 to the Cyient stock post Q4 earnings. 

"Cyient DLM 4QFY24 quarterly numbers were broadly in line with JMFe. Revat INR 3.6bn up 30% YoY driven by growth in defence seg. (78% yoy), aerospace seg. (52%yoy), and medical seg. (26% yoy). However, Industrial seg. saw de-growth (-57% yoy and -15% qoq). Gross margin expanded 30bps YoY at 23.9% led by change in revenue mix. However, EBITDA witnessed decline of 99bps YoY mainly due to investment in team building. We maintain BUY rating with a target of Rs 887 (earlier Rs 925) at 45x on FY26 EPS," said JM Financial in its earnings review. 

Motilal Oswal has maintained its buy rating with a target price of Rs 840. 

"Cyient DLM being an integrated EMS and solutions provider in the rapidly growing critical end-user industries, is likely to capture its share of the pie, aided by its strong core competencies and high technical capabilities. Going forward, we expect CYIENTDL to sustain its growth momentum, supported by: 1) a strong order book coupled with healthy order inflows; 2) high customer stickiness; and 3) a strong promoter heritage. We estimate CYIENTDL to report a revenue/EBITDA/Adj. PAT CAGR of 33%/49%/68% over FY24-26. We broadly maintain our FY25/FY26 EPS estimates. Reiterate BUY with a targeT price of Rs 840 (premised on 38x FY26 EPS),"said the brokerage. 

Cyient DLM stock gained 13.41% to Rs 779.55 on BSE. Market cap of the firm rose to Rs 5808.38 crore. Total 1.68 lakh shares of  Cyient DLM changed hands amounting to a turnover of Rs 12.56 crore. 

The share has gained 11% in six months.

In terms of technicals, the relative strength index (RSI) of Cyient DLM stands at 35.2, signaling it's trading neither in the overbought zone nor in the oversold zone. The stock has a beta of 0.5, indicating low volatility in a year.  

The stock stands lower than the 5 day, 20 day, 50 day, 100 day, 150 day moving averages.

EBITDA climbed 18.8% to Rs 37.9 crore in Q4 against Rs 31.9 crore in the corresponding period in the previous fiscal. EBITDA margin in the last quarter stood at 10.5% against 11.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Anthony Montalbano, CEO of Cyient DLM, said, "The robust growth for this year was led by aerospace and defence (A&D) segments. Large deals in A&D constitute a major portion of order book and pipeline and are expected to contribute towards FY25 & FY26 growth."

Cyient DLM is an integrated electronic manufacturing services (EMS) and solutions provider. The company's electronic manufacturing services are provided as build to print (B2P) and build to specification (B2S) services for its clients. Its B2P solutions involve its clients providing the design for the product for which it provides agile and flexible manufacturing services. Its B2S services involve utilizing its promoters design capabilities to design the relevant product based on the specifications provided by the client and manufacturing the product.

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