CYIENT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.9

📈 Positive

• 💰 Low debt-to-equity ratio of 0.02 ensures financial stability and minimal leverage risk.
• 📊 ROCE of 15.6% and ROE of 13.2% reflect decent capital efficiency for a mid-cap tech firm.
• 💸 Dividend yield of 2.20% offers attractive passive income.
• 📈 DII holding increased by 2.79%, showing strong domestic institutional confidence.
• 📈 EPS of ₹40.8 supports earnings visibility and valuation strength.

⚠️ Limitation

• 📉 Negative PEG ratio (-3.68) suggests valuation is not supported by growth trajectory.
• 📉 P/E of 29.6 is slightly below industry average (33.1), but may still be high given recent earnings pressure.
• 📉 Quarterly profit variation of -20.3% indicates margin compression or cost escalation.
• 📉 MACD at -0.23 and RSI at 47.9 reflect neutral technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹1,194 and ₹1,329), confirming short-term bearish trend.

📰 Company Negative News

• 📉 FII holding declined by 3.81%, indicating reduced foreign investor interest.
• 📉 52-week performance down 10.5%, reflecting market caution or sectoral headwinds.

🌟 Company Positive News

• 📈 Volume above 1-week average suggests renewed investor interest.
• 📈 Sequential PAT growth from ₹119 Cr. to ₹128 Cr. shows operational resilience.

💻 Industry

• 💻 CYIENT operates in engineering, digital, and technology services, serving aerospace, transportation, and industrial sectors.
• 📊 Industry P/E of 33.1 reflects moderate growth expectations and premium valuations for niche IT service providers.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,120–₹1,150, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding viable for investors seeking diversified tech exposure, but monitor earnings consistency.
• ⚖️ Watch for technical reversal and foreign investor sentiment before aggressive accumulation.