CMP: 620.90 Target Price: 743.00 Upside:20%
- Cyient Limited, formerly Infotech Enterprises Limited, is engaged in providing software-enabled engineering and geographic information
- system (GIS) services. The Company’s segments include Data & Network Operations (DNO); Engineering, Manufacturing, Industrial Products (EMI), and Product Realisation (PR).
- It employs nearly 14,000 people across 48 development facilities in India as well as North America, Europe, and the Asia-Pacific.
- The management expects to start realizing significant revenue contribution from strategy execution in coming quarters. The strong outlook is backed by a strong pipeline and order backlog. The management expects a double-digit growth in services business while DLM (Design Led Manufacturing) business would grow at least 20%. Cyient is progressing well on another year of well-rounded growth in revenue, profit, and cash.
- Its Aerospace and Defense Business Unit has witnessed a growth of 12.7% year on year and 4.1% quarter on quarter. The management of the company continues to see strong demand for Design-Build projects and also expect its growth to be driven by Avionics, Aftermarket, Manufacturing related Services and Defense.
- The Communications industry is witnessing increased demand for high-speed infrastructure as well as fiber deployment across Australia, New Zealand, and the U.S. The growth momentum of Communications division will continue in coming quarters, as the management sees growth opportunities from fiber roll-out programs, and small cell design and deployment in Australia and North America.
- The management expects strong growth in Transportation division in coming quarters owing to its growth in focus segments of rolling stock and signaling, strong long-term relationships, improved utilization and a healthy opportunity pipeline.
- During Q3FY18, It has well-rounded growth across all business units and geographies, 6 out of 8 BU’s growth is in double digits in YoY terms.
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