CMP: ₹721.20
Cyient DLM Restricted (CDLM) This autumn-FY24 quarterly numbers have been broadly in step with JMFe. Rev at ₹360 croreup 30 per cent y-o-y pushed by development 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 result of funding in workforce constructing.
We stay optimistic on inventory primarily as a result of income being positively impacted by – addition of latest logos, world tailwinds and elevated providing of worth added providers, margin enlargement led by change in combine – rising share from increased margin phase and clients and better share of export, inorganic enlargement on playing cards – but to utilise IPO proceeds.
Primarily based on these components, we anticipate 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 development of 63/57 per cent in FY25/26.
We preserve Purchase ranking with a goal of ₹887 (earlier ₹925) at 45x on FY26 EPS
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