CYIENT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📡 Fundamental Analysis: Cyient Ltd (CYIENT) Fundamental Rating: 3.5

🔍 Core Financial Overview

Earnings Performance

EPS: ₹56.4 ➜ respectable earning capacity for mid-cap IT

PAT dipped to ₹154 Cr (↓6.88% QoQ) ➜ needs rebound for sustained valuation

Returns

ROE: 12.8%, ROCE: 16.6% ➜ moderate return efficiency

Financial Health

Debt-to-Equity: 0.10 ➜ conservatively leveraged

Dividend Yield: 2.11% ➜ solid passive income potential

🧾 Insight: Fundamentals are reasonably sound but don’t justify aggressive growth expectations.

📊 Valuation Metrics

Metric Value Commentary

P/E Ratio 21.9 discount to industry avg (31.8) ➜ attractive

P/B Ratio ~2.58 (₹1,232 / ₹478) ➜ fair asset valuation

PEG Ratio 4.00 overvalued relative to earnings growth

📉 Verdict: Appears undervalued vs peers on P/E but PEG suggests limited near-term upside unless growth accelerates.

🧭 Business Model & Competitive Advantage

Domain-focused engineering and IT services firm with capabilities in

Aerospace, transportation, communications, and medical tech

Moats

Deep domain expertise and digital manufacturing IP

Synergistic mix of services + product design

Strategic global client relationships

📍 Challenges

Slower discretionary IT spend

Narrower margins vs top-tier IT firms

FII selling pressure (↓2.48%) could reflect growth skepticism

📉 Technical Indicators

RSI: 33.3 ➜ nearing oversold levels

MACD: -15.9 ➜ bearish crossover — momentum still weak

Price trading below both DMA 50 & DMA 200 ➜ short-term weakness persists

✅ Suggested Entry Zone: ₹1,120–₹1,180 📌 Ideal time to accumulate if RSI bottoms and volume stabilizes

🧭 Long-Term Holding View

✅ Suitable for investors seeking niche digital engineering exposure

🚀 Good compounding potential through smart city, IoT, and defence segments

🧩 Portfolio fit for those balancing IT with diversified industrial tech

⚠️ Watch quarterly earnings for margin trends and backlog growth. Accumulate cautiously and avoid chasing until strong reversal emerges.

If you’d like to see how Cyient stacks up against L&T Technology Services or Tata Elxsi, I can build a fundamentals matrix to highlight valuation vs tech depth. Say the word and I’ll get that rolling.

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