"We cut FY27/28 EPS estimates by 10 per cent/2 per cent and downgrade the stock to 'HOLD' from 'BUY', revising our target to Rs 1,025 from Rs 1,031, based on an unchanged target multiple of 50x 1HFY29E EPS," Antique said.
JPMorgan recommended 'Underweight' on the stock with a target price of Rs 530, implying a potential downside of 48 per cent. Kotak Institutional Equities suggested 'Sell' and a target of Rs 790 on the stock.
Cyient DLM's fross margins for the quarter declined 380 bps YoY to 37.4 per cent on adverse revenue mix and product development purchases, analysts said. They said a record order book and a book-to-bill ratio of 1.6 times provide strong revenue visibility but continued investments in the sales organisation and expensed product development costs will keep FY27 margins in high single digits.
Motilal Oswal Financial Services (MOFSL) said Cyient DLM sustained strong growth in Q2, with a record order book of Rs 2,810 crore, reinforcing visibility for H2FY27 and beyond. It said the company was entering a multi-year growth phase, supported by continued momentum in aerospace, a rising contribution from box-build operations, a ramp-up in semiconductor equipment and four Electronic Products programmes expected to scale meaningfully from FY30.
"We estimate a CAGR of 30 per cent/41/63 per cent in revenue, Ebitda and adjusted PAT over FY26-29E. We reiterate our BUY rating on the stock with a target of Rs 1,320 (50x Sep’28 EPS, implying a 0.8x PEG ratio)," it said.
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