Cyient stock analysis and expert insights in detail

Stock overview

Ticker	CYIENT
Sector	IT & Engineering Services
Market Cap	₹ 14,100 Cr
CMP (Current Market Price)	₹ 1,273
52-Week High/Low	₹ 2,190/ ₹ 1,198
P/E Ratio	22.2 x
Beta	0.9 (Moderate volatility)

About CYIENT

Cyient Ltd. specialises in delivering digital engineering and design-led manufacturing services across industries like aerospace, telecom, and healthcare. With a robust global footprint and a growing order book, the company is well-positioned for sustained growth. 

Find out a detailed overview of the company below : 

Primary growth factors for CYIENT:

1. Digital engineering & Global footprint

• Cyient is a leading global engineering and technology solutions provider.
• Strong capabilities in Aerospace, Rail, Telecom, and Healthcare.
• Serves over 300 global clients, including industry giants like Boeing, Airbus, and Verizon.

2. Financial Performance of CYIENT for Q3 FY25

• Revenue: ₹1,926 crore (+5.8% YoY)
• EBIT: 11.4% (-288 bps YoY)
• Net Profit: ₹128 crore (-31.0% YoY)
• EPS: ₹11.65 (-31.1% YoY)
• Free Cash Flow: ₹294 crore (+83.6% YoY)

The company reported growth in revenue. However, sharp rise in costs put pressure on the overall profitability of the business.

CYIENT has 2 primary verticals : 

1. CYIENT DET (Digital, Engineering and Technology)
2. CYIENT DLM (Design Led Manufacturing)

The revenue split for Q3 FY 25 is as below : 

1. CYIENT DET : The business is the most important vertical for CYIENT as it contributes to 77% of the overall revenue for the business. The segment is also well diversified in terms of revenue with healthy revenue contribution from Transportation, Connectivity, Sustainability and New Growth Areas. The revenue split is as under : 

2. CYIENT DLM : Cyient offers full-scale electronic and mechanical aerospace manufacturing engineering solutions—from conceptualization to design and maintenance.

It has expertise in electronics manufacturing, wire cable harness, PCB assembly, in-circuit testing, aerospace CNC machining, precision tooling, vibration testing, and first article inspection.  

Its portfolio covers the design, build, and maintenance phases of the product life cycle to provide OEMs with a single source for optimising aerospace parts manufacturing processes. This business contributes to 23% of overall CYIENT’s revenue. 

3. Strategic initiatives & new wins

• Major deal wins in 5G rollout, EV manufacturing, and defence systems.
• Investing in AI-powered design automation and sustainability-driven solutions.
• Expanding delivery centres in North America and Europe to drive nearshore advantages.

Detailed competition analysis for CYIENT

Company	Market Cap	Revenue	P/E	RoCE
CYIENT	14,100 cr	₹ 1,926 cr	22.2x	21.9%
OFFS	67,000 cr	₹ 1,715 cr	29.4x	39.5%
Tata Elxsi	33,700 cr	₹ 1,477 cr	41.6x	42.7%

• CYIENT is attractively placed vs its competitors at the moment as the stock saw a sharp correction of 20% after declaring its Q3 FY 25 results.
• This is because the company revised its DET revenue outlook for FY 25 from a flat growth to a 2.7% de-growth.

Company valuation insights : CYIENT

From a relative valuation standpoint:

Company	CYIENT	Industry Average
P/E	22.2 x	29.2 x
Price to Book Value	2.7	3.0 x
EV/EBITDA	10.6 x	16.7 x

• Cyient’s attractive valuation and consistent revenue growth make it a compelling alternative to higher-priced peers.

As per Discounted Cash Flow analysis:

It estimates the intrinsic value of CYIENT based on expected future cash flows:

• Intrinsic Value Estimate: ₹1,370 per share
• Upside Potential: 12%
• WACC: 10.2%
• Terminal Growth Rate: 5.5%

Major risk factors affecting CYIENT

1. Revenue downgrade by management: Near-term pain is likely in the stock owing to a downward revision of the FY 25 revenue forecast by the company’s management.
2. Execution challenges: Complex projects may face operational hurdles, affecting profitability.

Technical analysis of CYIENT

• Current Trend: The stock has sharply corrected from 1700 levels and is currently trending in the range of 1250-1300. Further an overall correction in the stock market has also inflicted pain for the investors of this stock.
• Support Level: ₹1,200
• Resistance Level: ₹1,350

CYIENT stock recommendation by Ketan Mittal

Current Stance: BUY with a 12-month target of ₹1,370.

Rationale:

Global client base with sticky, long-term contracts.

Double-digit growth in revenue and profitability.

Strategic acquisitions and strong digital focus.

Technically strong setup for further upside.

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Conclusion

Cyient’s rapid growth, innovative solutions, and attractive valuation make it a high-potential stock in the IT & engineering services space. With strong financial results and bullish technical indicators, the stock offers a compelling investment opportunity.