Cyient Outlook: After the March 2022 quarterly results, the shares of Cyient (formerly Infotech Enterprises) were up 8 percent today. However, its price is still at 30 percent discount.
Cyient Outlook: After the March 2022 quarter results, the shares of global engineering, manufacturing and digital solutions company Cyient (formerly named Infotech Enterprises) rose 8 per cent today and reached a price of Rs 899.85 on the NSE. However, according to analysts of domestic brokerage firm ICICI Securities, it may still see a rise of 15 per cent. The brokerage firm has fixed a target price of Rs 1037 per share for investing in it.
Experts are placing bets because
- According to experts at ICICI Securities, chip shortage in the DLM (design-led manufacturing) business had a negative impact on the overall performance of the company but could be offset by outperformance in the services segment. Apart from this, due to change in management strategy and improvement in performance, the company’s business may see a boom going forward. In the current financial year 2022-23, the company’s group growth is estimated at 14 per cent year-on-year in dollar terms, 15 per cent in service business and 9 per cent in DLM.
- The brokerage firm has upgraded the rating of this stock from add to buy as it is currently trading at 14x PE price in FY2024 with an estimated Earnings Per Share (EPS) of Rs 58, which is very attractive for investment.
Shares at 30% discount from 52-week record high
The prices of Cyient have weakened 15.57 percent so far this year, but during trading today, the NSE has closed at Rs 899.85 with a jump of 8.23 percent. There is a possibility of further growth in this. Talking about the record high price of 52 weeks, it was on 19 October 2021 last year at a price of Rs 1292 i.e. its shares are getting 30 percent discount now. Last year, on 23 April 2021, it had slipped to a price of Rs 670 on NSE, which is a 52-week low.