Cyient Ltd, incorporated in the year 1991, is a Mid Cap company with a market cap of Rs 7556.85 crore, operating in IT Software sector.
Cyient’s key Products/Revenue Segments include Software Development Charges for the year ending 31-Mar-2020.
Investment rationale
According to the report from Edelweiss Securities, the company’s margins expanded 148bps QoQ and the company’s management estimates FY22 EBIT to improve roughly by 200bps despite headwind of wage hikes. Edelweiss Securities firmly believes that the ER&D story will remain intact over the long term. Having said that, Cyient could face headwinds due to lockdowns in a few states. The stock trades at 11.9x FY22E.
Financials
For the quarter ended 31-03-2021, the company has reported a consolidated total Income of Rs 1133.40 Crore, up 6.30 per cent from last quarter’s total income of Rs 1066.20 Crore and up 0.52 per cent from last year same quarter’s total income of Rs 1127.50 Crore. Company has reported a net profit after tax of Rs 103.10 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 22.9 per cent stake in the company as of June 30, 2020, while FIIs held 42.2 per cent, DIIs 22.1 and public and others 12.9 per cent.
