Buy Cyient Ltd., target Rs 550.0 : Motilal Oswal Securities

Motilal Oswal Securities has Buy call on Cyient Ltd. with a target price of Rs 550.0. The current market price of Cyient Ltd. is 495.0. Time period given by analyst is year, when Cyient Ltd. price can reach defined target. Cyient is expecting double-digit growth in the Services business in FY17 (at least 10%). The confidence stems from visibility of top clients in Aerospace, traction in the Communication vertical, improvement in revenue trajectory in Rail Transportation, and a strong pipeline to add to that. Rangsons’ soft start to the year was on expected lines, but it should come back strongly to grow ~50% YoY, based on current backlog.