Stock recommendations: Buy Cyient, target price Rs 1220: HDFC Securities

HDFC Securities has buy call on Cyient with a target price of Rs 1220. The current market price of Cyient Ltd. is Rs 908.35. Time period given by analyst is one year when Cyient Ltd. price can reach defined target.

Cyient Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 9985.35 Crore) operating in IT Software sector.

Cyient Ltd. key Products/Revenue Segments include Software Development Charges for the year ending 31-Mar-2020.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 1205.50 Crore, up 7.01 % from last quarter Total Income of Rs 1126.50 Crore and up 13.07 % from last year same quarter Total Income of Rs 1066.20 Crore. Company reported net profit after tax of Rs 131.80 Crore in latest quarter.

Investment Rationale
Factored USD revenue/EPS at 12/11% CAGR over FY22-24E with services/DLM CAGR at 11/15% respectively driven by recovery in aerospace and strong communications vertical.

Promoter/FII Holdings
Promoters held 23.43 per cent stake in the company as of 30-Sep-2021, while FIIs owned 36.92 per cent, DIIs 21.54 per cent.