CYIENT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials

Earnings & Profitability: EPS of ₹105 and PAT of ₹119 Cr (flat QoQ) reflect stable earnings. ROCE at 15.6% and ROE at 13.2% are respectable for a mid-cap IT firm.

Debt Profile: Debt-to-equity of 0.02 — virtually debt-free, which enhances financial flexibility.

Cash Flow: While not explicitly stated, low debt and consistent profitability suggest healthy operating cash flows.

Quarterly Profit Variation: 48.8% indicates strong YoY growth, despite flat sequential performance.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 29.5 Slightly undervalued vs. industry PE (32.2)

P/B Ratio ~3.68 Reasonable premium over book value

PEG Ratio -3.67 Negative PEG suggests earnings contraction or forecast uncertainty

Dividend Yield 2.08% Attractive for a tech services company

Valuation is fair, though the negative PEG ratio flags caution on growth expectations.

🧠 Business Model & Competitive Advantage

Cyient Ltd. is a global engineering and technology solutions provider with strengths in

Aerospace, rail, telecom, and industrial verticals

Digital transformation, geospatial analytics, and design-led manufacturing

Strategic acquisitions (e.g., Citec) to expand capabilities and global footprint

The company is known for its niche engineering services and has a strong presence in Europe and North America. It’s also investing in AI and digital platforms to enhance margins and client stickiness.

📈 Technical & Sentiment Indicators

RSI: 57.4 – Neutral zone, suggesting balanced momentum.

MACD: 8.66 – Bullish crossover, indicating short-term strength.

Volume Surge – Well above weekly average, signaling rising interest.

DMA 50 & 200: Price is above 50-DMA but below 200-DMA — mixed technicals.

According to The Hindu BusinessLine, Cyient has formed a double-bottom pattern with a target of ₹1,360. Traders are advised to accumulate around ₹1,240 with a stop-loss at ₹1,210

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,220–₹1,240, near technical support and accumulation zone.

Current Price ₹1,248: Slightly above ideal entry, still reasonable for accumulation.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong fundamentals, low debt, and niche positioning make Cyient a solid long-term play.

Watch FII Sentiment & PEG Ratio: Recent FII outflow (−2.48%) and negative PEG suggest short-term caution.

You can explore Cyient’s live share analysis and valuation metrics for deeper insights

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. Let me know if you'd like a peer comparison with L&T Technology Services or Tata Elxsi.

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The Hindu BusinessLine

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trendlyne.com

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