⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CYIENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CYIENT | Market Cap | 12,723 Cr. | Current Price | 1,144 ₹ | High / Low | 1,537 ₹ |
| Stock P/E | 27.9 | Book Value | 348 ₹ | Dividend Yield | 2.27 % | ROCE | 15.6 % |
| ROE | 13.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,146 ₹ | DMA 200 | 1,242 ₹ |
| Chg in FII Hold | -2.28 % | Chg in DII Hold | 1.09 % | PAT Qtr | 89.5 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 50.7 | MACD | -5.07 | Volume | 1,65,467 | Avg Vol 1Wk | 2,38,055 |
| Low price | 1,050 ₹ | High price | 1,537 ₹ | PEG Ratio | -3.47 | Debt to equity | 0.02 |
| 52w Index | 19.3 % | Qtr Profit Var | 25.5 % | EPS | 21.2 ₹ | Industry PE | 25.7 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT declined from 128 Cr. to 89.5 Cr., showing earnings pressure despite long-term stability.
- Profit Margins: ROE at 13.2% and ROCE at 15.6% indicate moderate efficiency.
- Debt Ratios: Debt-to-equity at 0.02 highlights a near debt-free balance sheet.
- Cash Flows: Dividend yield of 2.27% provides attractive shareholder returns compared to peers.
💹 Valuation Indicators
- P/E Ratio: 27.9 vs Industry PE of 25.7, suggesting slight premium valuation.
- P/B Ratio: Current Price 1,144 ₹ / Book Value 348 ₹ ≈ 3.29, moderate valuation.
- PEG Ratio: -3.47, reflecting weak or negative growth expectations.
- Intrinsic Value: Estimated fair value around 1,080–1,120 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Cyient is an engineering and technology solutions company serving aerospace, defense, telecom, and industrial sectors.
- Competitive advantage lies in diversified global client base and specialized engineering expertise.
- Strong focus on innovation and digital transformation services supports long-term demand.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,080–1,120 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Suitable for long-term investors seeking exposure to engineering services, but earnings volatility requires cautious entry.
✅ Positive
- Debt-light structure with debt-to-equity at 0.02.
- Dividend yield of 2.27% provides strong shareholder returns.
- DII holdings increased (+1.09%), showing domestic institutional support.
⚠️ Limitation
- Quarterly PAT decline highlights earnings weakness.
- PEG ratio negative, reflecting poor growth visibility.
- Stock trading below DMA 200, showing weak momentum.
📉 Company Negative News
- Decline in FII holding (-2.28%) indicates reduced foreign investor confidence.
- Technical indicators (MACD -5.07) show bearish sentiment.
📈 Company Positive News
- DII holdings increased (+1.09%), showing domestic support.
- Dividend yield of 2.27% is attractive compared to industry peers.
🏭 Industry
- Engineering services industry PE at 25.7, slightly lower than Cyient’s 27.9, suggesting mild overvaluation.
- Industry growth supported by digital transformation and global outsourcing trends.
🔎 Conclusion
- Cyient is a stable engineering services company with low debt and decent returns.
- Valuation is slightly stretched compared to industry peers, and profit decline is a concern.
- Best suited for long-term investors with cautious entry around 1,080–1,120 ₹; accumulation strategy recommended for exposure to engineering and digital transformation growth.
I can also outline sector-specific demand drivers (like aerospace and telecom outsourcing trends) that could influence Cyient’s growth trajectory if you’d like.