Buy Cyient, target price Rs 660: Motilal Oswal

Buy Cyient, target price Rs 660:  Motilal Oswal

Motilal Oswal has buy call on Cyient with a target price of Rs 660. The current market price of Cyient Ltd. is Rs 570.65.

Cyient Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 5584.34 Crore) operating in IT Software sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 1044.30 Crore, up 4.09 % from last quarter Sales of Rs 1003.30 Crore and down -5.57 % from last year same quarter Sales of Rs 1105.90 Crore Company reported net profit after tax of Rs 95.40 Crore in latest quarter.

Investment Rationale
Supported by a better-than-expected revenue and margin outlook, it upgrades FY21E/FY22E/FY23E EPS estimate by 4.5%/14.2%/6.5%. Its target price of INR660/share is based on 14x FY23E EPS (10% premium to its five-year median multiple), implying an upside of 30%.

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.

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