Buy Cyient, target price Rs 910: Motilal Oswal

Motilal Oswal has buy call on Cyient with a target price of Rs 910. The current market price of Cyient Ltd. is Rs 782.05.
Cyient Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 8639.23 Crore) operating in IT Software sector.

Cyient Ltd. key Products/Revenue Segments include Software Development Charges for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1415.90 Crore, up 10.29 % from last quarter Total Income of Rs 1283.80 Crore and up 25.69 % from last year same quarter Total Income of Rs 1126.50 Crore. Company reported net profit after tax of Rs 79.10 Crore in latest quarter.

Investment Rationale
The brokerage continues to see a strong rebound in ER&D spending, led by increased outsourcing and larger deal sizes. The management plans to leverage these spends, led by a refreshed GTM strategy and increased focus on large deal wins should bode well for its growth performance. The growth momentum in verticals such as Communications, Utilities, Medical Devices, Automotive, and Mining is likely to continue for the next two-to-three years. It maintains Buy rating led by attractive valuations. The target multiple of 14x FY24E EPS implies a TP of INR910.

Promoter/FII Holdings
Promoters held 23.37 per cent stake in the company as of 30-Sep-2022, while FIIs owned 34.04 per cent, DIIs 23.69 per cent.