Broker’s Call: Cyient (Add)
HDFC Securities
Cyient has shifted its focus from being a traditional ER&D vendor to an IP-led intelligent engineering platform, with value creation spread across three key pillars: the core DET services business, the 52% owned DLM franchise, and the newly established semiconductor vertical. Growth within DET is expected to be driven by transportation, connectivity, and strategic growth clusters such as nuclear, data centers, process industries, and med tech.
The company's restructuring, including the unification of eight business units into three clusters and the integration of the TAO acquisition, aims to increase revenue and expand its market presence. Cyient projects a modest 2% organic growth in FY27E, with potential expansion reaching 6% in FY28E and mid-to-high single-digit growth in FY28/29E.
The company's semiconductor focus, driven by acquisitions and a roadmap, aims for a 4x revenue growth, with a target price of ₹1,350 per share.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
