desk
Share
The stock of Cyient, a global intelligent services provider, is witnessing a massive beating today. The stock started falling with the start of the last session of the week. In fact, the company had released the December quarter results a day earlier, i.e. on Thursday, after the market closed. The company's profit has fallen by more than 30% in the third quarter. There has been a marginal increase of half a percent in income. Apart from this, the company's CEO Karthikeyan Natarajan has also resigned.
On Friday at 10 am, it was trading 18.6% down at ₹ 1429 per share. With the opening of the market at 09:15, the stock was hit twice in lower circuit. Both times after the opening of the lower circuit, the stock saw a decline.
After the release of Q3 results, the company's Executive Vice Chairman and Managing Director said that our semiconductor business is seeing good growth. The order book has also shown strength. In the third quarter, the company has received orders worth $312.2 million. The company has also succeeded in securing 13 new deals. What is the expectation? Cyient now expects to see 2.7% growth in revenue from its Digital, Engineering and Technology (DET) business on an annual basis. The company had earlier given guidance of 16% EBIT margin. This guidance was for the fourth quarter. But now this estimate has been reduced to 13.5%. What did the management say on the reduction in margin guidance? Management told in a post-results conversation that the reduction in income growth guidance has been done due to changes in projects. At the same time, EBIT margin has been reduced due to aggressive wage hike. The company will focus on EBIT margin of 16% in the financial year 2026. Analyst made a big cut in the target After the results were released, global brokerage firm JPMorgan has reduced the target price of the stock from ₹ 2300 to ₹ 1,750 per share. Along with this, the target price has also been downgraded from Overweight to Neutral. Motilal Oswal has downgraded the rating on the stock to SELL and reduced the target price from ₹ 2,100 to ₹ 1,350 per share. With today's fall, Cyient's stock has slipped 21% so far this year. This stock has seen more than 30% weakness in the last one year. Its 52-week high is ₹2,264.90 per share. Whereas, the 52-week low has become ₹1,404.15 per share. This level has been formed today i.e. 24 January 2025.
