Cyient Shares Surge 4% as Appointed New CEO and Executive Director of DET Business
Business and Industry Overview
Cyient (formerly Infotech Enterprises Limited) is an Indian multinational technology company focused on engineering, manufacturing, data analytics, networks, and operations. It was established in 1991 in Hyderabad as Infotech Enterprises Ltd. Infotech Enterprises was renamed Cyient in 2014. Cyient is one of the world’s top 30 outsourcing companies. It operates through eight strategic business units: Aerospace and defence, Transportation, Industrial, Energy and Natural Resources, Semiconductor, Internet of Things and Analytics, Medical and Healthcare, Utilities and geospatial, Communications, and Design-Led Manufacturing (Cyient DLM). Its IPO was completed in July 2023 with proceeds of ~700 crore. It serves a global customer base through its subsidiaries and joint ventures in the USA, UK, Germany, Japan, Australia, Singapore, and India. In FY23, the company recognised Rs. 941.9 crore as goodwill.
Cyient’s range of services include digitization of drawings and maps photogrammetry computer-aided design/engineering (CAD/CAE) design and modelling repair development engineering reverse engineering application software development software products development consulting analytics and implementation. Cyient’s industry focus includes aerospace and defence, healthcare, telecommunications, rail transportation, semiconductor, geospatial, industrial, and energy. Cyient offers full-scale electronic and mechanical aerospace manufacturing engineering solutions—from conceptualization to design and maintenance. It has expertise in electronics manufacturing, wire cable harness, PCB assembly, in-circuit testing, aerospace CNC machining, precision tooling, vibration testing, and first article inspection and its portfolio covers the design, build, and maintenance phases of the product life cycle to provide OEMs with a single source for optimizing aerospace parts manufacturing processes. As of H1FY24, company has $100Mn Large deals (their largest deal pipeline ever).
India’s IT industry is growing fast. In 2022, it made $227 billion, and in 2023, this number increased to $245 billion. Experts predict that by 2026, the industry will reach $350 billion and contribute 10% to India’s economy. Spending on IT in India is also increasing. In 2024, companies are expected to spend $138.6 billion, which is 11.1% more than last year. The software industry in India is also growing and is expected to reach $100 billion by 2025. India is also becoming a big player in artificial intelligence (AI). The market for data labeling, which helps AI learn, was worth $250 million in 2020 and is expected to grow to $7 billion by 2030. India’s IT companies are expanding globally, setting up offices in different countries. In 2023, IT exports brought in $194 billion, with IT services making up more than half of that amount. Other major areas of IT exports include software products and engineering services.The IT industry is also creating many jobs. In 2023, 2.9 lakh (290,000) new jobs were added, bringing the total number of IT workers in India to 5.4 million. In short, India’s IT industry is booming, with more spending, higher exports, and more jobs being created every year. Cyient DET is one of the major player with Market Cap ₹ 15,153 Cr.
Latest Stock News
Cyient DET made INR 1,480 crores in revenue, showing a 2.1% increase from the last quarter but a 0.8% drop compared to last year. In constant currency terms, revenue grew by 2.4% quarter-on-quarter but declined by 1.9% year-on-year. The company’s EBIT (profit before interest and taxes) stood at INR 200 crores, with a margin of 13.5%. However, PAT (profit after tax) was INR 124 crores, reflecting a 28.3% decline from the previous year. Despite this, the order intake showed a positive trend, growing by 5% year-on-year.
Cyient has appointed Sukamal Banerjee as its new CEO after Karthikeyan Natarajan resigned last month. Natarajan stepped down following the company’s poor financial results in the third quarter. As of FY23, the company has 40 wholly owned subsidiaries and 1 proportionate subsidiary.
The company’s performance in December 2024 was not strong. Its profit after tax (PAT) dropped by 34.2%, and its profit before tax (PBT), excluding other income, fell by 17.73%. The company’s ability to turn sales into profit was at its lowest, with an operating profit margin of 14.48%.
The stock is currently in a downward (bearish) trend. Since January 21, 2025, its trend has worsened, and its value has lost 21.66%. Several technical indicators, such as MACD, Bollinger Band, and KST, also suggest a negative outlook.
Over the last year, the stock has not performed well compared to the broader market. While the BSE 500 index showed a small gain of 0.24%, this stock lost 34.84% in value, meaning it has significantly underperformed.
The Potential of the Company
Cyient has a great chance to grow because more and more businesses around the world need digital, engineering, and manufacturing solutions. The company is focusing on industries like aeroplanes, defence, healthcare, and telecommunications, which are expanding fast. However, there are some risks, like economic slowdowns, new technology trends, and strong competition from other IT companies.
To grow bigger, Cyient is working on new projects and teaming up with other companies. It is improving its skills in artificial intelligence, data analysis, and automation. The company is also buying other businesses to improve its services and reach more customers. For example, it acquired companies like Citec, Grit, and Celfinet to strengthen its offerings.
Cyient is also making partnerships with big companies like Thales and working with schools to train students for future jobs. These efforts will help the company stay strong and successful in the fast-changing world of technology.
Analyst Insights
Key Financial Metrics:
- Market Cap: ₹15,011 Cr.
- Stock P/E: 23.6
- Dividend Yield: 2.22%
- ROCE (Return on Capital Employed): 21.9%
- ROE (Return on Equity): 18.8%
Cyient has shown steady financial performance despite some short-term declines. The company has successfully reduced its debt and continues to maintain a healthy dividend payout of 51.8%, which is attractive for long-term investors. The stock has strong fundamentals with good returns on capital and equity. However, the recent earnings decline and stock price volatility present some risks.
Recommendation:
Considering the company’s efforts to expand and improve profitability while maintaining strong financial discipline, we recommend a Hold position. Investors should monitor future growth strategies, market conditions, and financial performance before making further decisions.