Goal: ₹887

CMP: ₹721.20

Cyient DLM Restricted (CDLM) This autumn-FY24 quarterly numbers have been broadly according to JMFe. Rev at ₹360 croreup 30 per cent y-o-y pushed by progress in defence seg. (78 per cent y-o-y), aerospace seg. (52 per cent y-o-y), and medical seg. (26 per cent y-o-y). Nonetheless,Industrial seg. noticed de-growth (-57 per cent y-o-y and – 15 per cent q-o-q).

Gross margin expanded 30bps YoY at 23.9 per cent led by change in income combine. Nonetheless, EBITDA witnessed decline of 99bps YoY primarily as a consequence of funding in crew constructing.

We stay constructive on inventory primarily as a consequence of income being positively impacted by – addition of recent logos, world tailwinds and elevated providing of worth added companies, margin growth led by change in combine – growing share from greater margin section and clients and better share of export, inorganic growth on playing cards – but to utilise IPO proceeds.

Primarily based on these elements, we count on Income/EBITDA/PAT CAGR of 31/43/60 per cent over FY24-26 with OPM of 9.6/11.1 per cent in FY25/26 and revised earnings y-o-y progress of 63/57 per cent in FY25/26.

We keep Purchase score with a goal of ₹887 (earlier ₹925) at 45x on FY26 EPS