CYIENT - Investment Analysis

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

Investment Rating: 3.1

🧠 Fundamental Analysis: Cyient Ltd. (CYIENT)

Cyient is a mid-cap IT and engineering services firm with exposure to aerospace, transportation, and industrial sectors. While its valuation is moderate and dividend yield attractive, growth metrics and technical trends suggest caution for long-term investors.

Metric Value Implication

Market Cap ₹13,691 Cr Mid-cap; niche player in engineering services

Stock P/E 21.9 Reasonable vs. industry PE of 31.8

PEG Ratio 4.00 Overvalued relative to growth; caution advised

ROCE / ROE 16.6% / 12.8% Moderate capital efficiency; not elite

Dividend Yield 2.11% Attractive; adds income stability

Debt-to-Equity 0.10 Low debt; financially sound

EPS ₹56.4 Solid earnings base

Qtr Profit Var +6.88% Mild growth; not high momentum

FII/DII Holding Change -2.48% / +1.50% FII selling; DII buying — mixed institutional sentiment

📉 Technical Analysis

Current Price: ₹1,232

DMA 50 / DMA 200: ₹1,288 / ₹1,450 → Trading below both; bearish trend

RSI: 33.3 → Near oversold zone; potential for technical bounce

MACD: -15.9 → Bearish crossover

Volume: Well below average; low investor interest

💰 Ideal Entry Price Zone

₹1,100–₹1,180

This range offers a better margin of safety and aligns with support levels

Avoid fresh entry above ₹1,300 unless PEG ratio improves and growth accelerates

📈 Long-Term Investment Outlook

Strengths

Reasonable P/E — valuation not excessive

Attractive dividend yield — good for income seekers

Low debt — financial stability

EPS and profit growth — consistent, though not explosive

Risks

PEG > 4 — overvalued for current growth trajectory

ROE and ROCE below ideal levels for compounding

RSI and MACD suggest weak momentum

FII selling — sentiment turning cautious

Cyient is a moderate-quality tech stock, suitable for dividend-focused portfolios but not a high-growth compounder at current valuation.

🏁 Exit Strategy / Holding Period

If you already hold CYIENT

Holding Period: 2–3 years for dividend and modest capital appreciation

Exit Strategy

Consider trimming near ₹1,900–₹2,100 if price rebounds

Reassess if ROCE stays below 15% and PEG remains above 3

Hold if dividend yield and earnings remain stable

Would you like a comparison with peers like Tata Elxsi, KPIT Technologies, or L&T Technology Services to explore stronger engineering services plays?

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