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2 weeks Ago By PL Capital
Cyient DLM defense segment got impacted due to completion of contract from domestic client, with the order book declining 12% YoY to Rs 19 billion. However, company remains positive about securing robust orderbook from Q2 FY26 onwards mainly from International clients. The management indicated that the contracts secured from Boeing Global Services and Deutsche Aircraft and one logo addition in industrial segment, expected to bring growth in order flow, which will be visible from H2 FY26.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.PL Capital ReportWe cut our FY26/FY27E EPS estimates significantly by 23.
5%/21.1%, due to continuous reduction in order book, no clarity of replacement of Bharat Electronics Ltd. contract and weaker than expected execution.
However, double digit margin reported even after excluding the one off in Q4 FY25, Cyient DLM Ltd. is confident to report 10%+ Ebitda margin in FY26. We have revised target price to Rs 546 (Rs 692 earlier), based on 30x FY27E earnings and downgrade our recommendation to ‘Accumulate’ from ‘Buy’.
Cyient DLM defense segment got impacted due to completion of contract from domestic client, with the order book declining 12% YoY to Rs 19 billion. However, company remains positive about securing robust orderbook from Q2 FY26 onwards mainly from International clients. The management indicated that the contracts secured from Boeing Global Services and Deutsche Aircraft and one logo addition in industrial segment, expected to bring growth in order flow, which will be visible from H2 FY26.
We estimate FY25-27E revenue/Ebitda/PAT CAGR of 21.1%/31.2%/45.
6%, with Ebitda margin expansion of ~160 bps. Click on the attachment to read the full report:HCLTech Q4 Review: Result A Miss; FY26 Guidance Remains Sector-Leading — Dolat Capital Cuts Target PriceDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way.
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