CYIENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | CYIENT | Market Cap | 9,687 Cr. | Current Price | 872 ₹ | High / Low | 1,377 ₹ |
| Stock P/E | 30.3 | Book Value | 323 ₹ | Dividend Yield | 2.98 % | ROCE | 16.8 % |
| ROE | 8.70 % | Face Value | 5.00 ₹ | DMA 50 | 919 ₹ | DMA 200 | 1,096 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 1.47 % | PAT Qtr | 78.4 Cr. | PAT Prev Qtr | 89.5 Cr. |
| RSI | 46.3 | MACD | -2.09 | Volume | 6,31,956 | Avg Vol 1Wk | 7,55,730 |
| Low price | 750 ₹ | High price | 1,377 ₹ | PEG Ratio | -13.1 | Debt to equity | 0.01 |
| 52w Index | 19.4 % | Qtr Profit Var | -34.3 % | EPS | 13.9 ₹ | Industry PE | 26.0 |
📊 Cyient (CYIENT) presents moderate fundamentals with ROE (8.70%) and ROCE (16.8%), which are below ideal compounding levels. Debt-to-equity at 0.01 reflects strong financial stability, and dividend yield of 2.98% adds shareholder value. EPS of ₹13.9 provides earnings visibility, but quarterly PAT declined (78.4 Cr vs 89.5 Cr), showing weakening profitability. Valuation is stretched with P/E (30.3) compared to industry average (26.0), and PEG ratio (-13.1) signals poor growth-adjusted value. Technicals remain weak with RSI (46.3) and negative MACD (-2.09), suggesting bearish momentum.
🎯 Entry Zone: 850 ₹ – 870 ₹ (near current support levels)
📌 Long-Term Holding: Suitable for cautious accumulation with dividend support. Upside potential exists toward 940–960 ₹, but long-term compounding requires stronger growth and efficiency metrics.
Positive
- Low debt-to-equity (0.01) ensures financial resilience.
- Dividend yield of 2.98% provides steady investor returns.
- DII holdings increased (+1.47%), showing domestic institutional confidence.
- EPS of ₹13.9 supports earnings visibility.
Limitation
- Weak ROE (8.70%) and moderate ROCE (16.8%).
- Quarterly PAT decline (89.5 Cr → 78.4 Cr).
- Negative PEG ratio (-13.1) indicates poor growth-adjusted valuation.
- Technical weakness with RSI below 50 and negative MACD.
Company Negative News
- No major negative news reported; earnings decline remains the primary concern.
Company Positive News
- DII inflows (+1.47%) reflect domestic institutional confidence.
- Dividend yield supports investor sentiment.
Industry
- Industry P/E (26.0) is lower than Cyient’s P/E (30.3), suggesting premium valuation.
- IT services and engineering design sector remains competitive, with demand driven by digital transformation and outsourcing.
Conclusion
⚠️ Cyient is financially stable with low debt and dividend support but faces weak efficiency and declining profitability. Entry around 850–870 ₹ offers limited risk-reward. Long-term holding is justified only with cautious exposure, as upside depends on earnings recovery and improved efficiency metrics.
This structured HTML report highlights Cyient’s stability through low debt and dividends but also its weak growth and efficiency metrics. If you’d like, I can prepare a peer benchmarking overlay against other IT engineering service companies like LTTS or KPIT to show relative positioning. Would you like me to build that next?