Cyient Q3 Results Review - Robust Order Book; Attractive Valuation: IDBI Capital

IDBI Capital Report

Cyient Ltd. expects organic revenue growth of 13-15% in constant currency terms and another 14-15% due to acquisition in CC terms. The company expects strong growth in aerospace, rail, communication, mining and new growth areas (like automotive and healthcare) to drive this growth.

In addition, the company aspires to reach $1 billion revenue run rate and earnings per share Rs 60 in FY24E. We believe this that in the current macro it will be difficult to deliver such robust revenue growth and hence we expect the company to register 21% growth in FY23E and 18% in FY24E.

In addition, Cyient will witness margin expansion mainly led by cost rationalisation undertaken by the company. This coupled with divestment of design led manufacturing will be another key trigger for the company.

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