Cyient Q2 Results Review - Attractive Valuation Key Positive: IDBI Capital
IDBI Capital has revised downwards its revenue estimates for Cyient for FY23 and FY24.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Cyient Ltd. has guided an organic revenue growth of 13-15% in constant currency terms and another 14-15% due to acquisition in CC terms. The company expects strong growth in aerospace, defence, communication, mining and new growth areas (like automotive and healthcare) to drive this growth.
However, we believe that in the current macro it will be difficult to deliver such robust revenue growth and hence we expect Cyient to register 20% growth in FY23E and 15% in FY24E.
Hence, we have revised our revenue estimates downwards by 3% and 2% in FY23E and FY24E. In addition the company has guided normalised Ebitda margins of 16-17% in FY23E. However, we have conservatively built margin estimates.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.