Cyient: Maintaining a Buy Recommendation with a Target Price of Rs 1250, Says Choice Institutional Equities

Cyient's Q4FY26 Performance Reflects Stable Execution Amid Near-Term Demand Volatility

Cyient's recent quarterly performance, as reported by Choice Institutional Equities, indicates a stable execution amidst near-term demand volatility. The company's revenue was impacted by timing-led delays, while its margins remained resilient. This resilience is a testament to Cyient's ability to navigate the challenging market conditions.

In addition to its stable execution, Cyient has also shown improvement in its order intake, pricing discipline, and continued traction in AI-led engineering and semiconductor scale-up. These developments support better medium-term visibility, despite the persistence of macro headwinds into Q1FY27. Furthermore, DLM's strong order book and semiconductor investments have strengthened the growth narrative.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The report maintains a constructive medium-term view, factoring in a gradual recovery in growth and margin expansion towards a 15% EBITM target. Choice Institutional Equities has retained its target multiple at 15x for the DET business. Based on this valuation, the report derives a target price of INR 1,250 using a sum-of-the-parts (SOTP) valuation. This target price is contingent on execution-led growth recovery and semiconductor scaling-up.