Cyient Shares Tumble After Q1 Profit Fall Prompts Nuvama Target Price Cut
Cyient reported a net profit of Rs 148 crore for the quarter ended June, compared to Rs 197 crore in the same quarter of the previous fiscal year.
Shares of Cyient Ltd. tumbled 9% on Friday after its profit declined 15% in the quarter ended June 2024, prompting Nuvama to cut the target price on the stock. The brokerage reduced its target price on the stock to Rs 1,840 apiece from earlier Rs 2,120 apiece, implying a potential downside of 3% from the previous close. The brokerage has retained its 'hold' call.
The IT services provider reported a net profit of Rs 148 crore for the quarter ended June, compared to Rs 197 crore in the same quarter of the previous fiscal year, according to its exchange filing. Revenue fell 9.9% to Rs 1,676 crore during the same period.
The company reported disappointing earnings along with weak order inflow, Nuvama said in a note on July 25. The company now requires over a 3% compounded quarterly growth rate to achieve fiscal 2025 flat year-on-year revenue guidance, according to the note.
Shares of Cyient rose as much as 8.99% during the day to Rs 1,723.9 apiece on the NSE. It was trading 7.69% lower at Rs 1,748.6 apiece, compared to a 0.47% advance in the benchmark Nifty 50 as of 9:48 a.m.
The stock has risen 19.5% in the last 12 months and declined 24% on a year-to-date basis. The total traded volume so far in the day stood at 8.6 times its 30-day average. The relative strength index was at 38.
Seventeen out of the 22 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 18%.
