Cyient DLM
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Cyient DLM's management has expressed a highly optimistic outlook for FY27, supported by a record order book of INR 2,599 crore, which provides nearly double the revenue visibility. The company's strategic shift from a traditional EMS provider to a design-led manufacturing partner is expected to enhance margins, particularly through its focus on high-reliability sectors such as aerospace and defense, as well as emerging areas like AI infrastructure and robotics. This transition aligns with Vista's forecast of stable margins and early revenue recovery, as the company anticipates EBITDA margins to improve by 250-300 bps over the next 12-18 months. However, challenges such as geopolitical supply chain complexities and increased working capital requirements could impact operational efficiency. The EMS sector's growth, bolstered by government support for local manufacturing, further underpins Cyient DLM's prospects. Over the next 12-24 months, key opportunities include expanding into high-margin sectors and leveraging a strong order pipeline, while watchpoints include managing execution risks and geopolitical uncertainties that could affect cash flow and margins
Why We Like This Stock
- Record order book provides strong revenue visibility and supports future growth
- Strategic shift towards high-margin sectors like AI and robotics is expected to enhance EBITDA margins
- Government support for local manufacturing initiatives bolsters the EMS sector's growth potential
Things To Watch Out For
- Geopolitical supply chain complexities pose risks to operational efficiency
- Increased working capital requirements could impact cash flow management
- Execution risks related to the transition to higher-margin segments may affect performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,192 | 1,520 | 1,261 | 1,679 | 2,101 |
| Profit Before Tax (Cr.) | 82 | 92 | 93 | 140 | 180 |
| PBT Margin | 6.9% | 6.1% | 7.4% | 8.3% | 8.5% |
| Net Profit (Cr.) | 61 | 61 | 74 | 112 | 144 |
| Earnings Per Share | 7.6 | 7.7 | 9.3 | 14.1 | 18.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Macguire | ▼ Underperform | 410 | 03-Sep-2026 |
| Motilal Oswal | ▲ Buy | 830 | 27-Jul-2026 |
| Deven Choksey | ► Hold | 697 | 22-Jul-2026 |
| JPMorgan | ► Hold | 530 | 22-Jul-2026 |
| Kotak Securities | ▼ Sell | 430 | 22-Jul-2026 |
| Prabhudas Liladhar | ► Hold | 635 | 22-Jul-2026 |
Company Overview
Show Company Profile
Cyient DLM Limited provides electronic manufacturing solutions in India, NAM, rest of the Asia-Pacific, Europe, the Middle East, and Africa. It offers integrated, electronics, mechanical, and additive manufacturing, as well as value-added services. The company also engages in the machining of components for the aerospace, automotive, and defense industries. It serves aerospace and defense, healthcare and lifesciences, industrial, and automotive industries. The company was incorporated in 1993 and is based in Mysore, India. Cyient DLM Limited operates as a subsidiary of Cyient Limited.