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Cyient DLM Share Price Jump 13% on 81% Q4 PAT Growth
Tanushree Jaiswal
24th April 2024 - 04:28 pm
Electronic manufacturing services, Cyient DLM’s share price surged as much as over 13% in early trade on BSE on Wednesday, April 24, a day after the company reported its March quarter result.
Cyient DLM share price opened at ₹736 against its previous close of ₹687.35 and soon jumped as much as 13.4% to the level of ₹779.55 on the BSE. Around 9:30 am, Cyient DLM share price traded 11.15% higher at ₹764 apiece. Equity benchmark Sensex was 0.25% up at that time.
The firm on Tuesday, April 23, reported an 80.2% year-on-year (YoY) surge in net profit at ₹22.7 crore for the fourth quarter that ended March 31, 2024. In the corresponding quarter, Cyient DLM posted a net profit of ₹12.6 crore, the company said in a regulatory filing.
The company's revenue from operations also increased 30.4% to ₹361.8 crore against ₹277.4 crore in the corresponding period of the preceding fiscal year. Its revenue for the entire financial year 2023-2024 came in at ₹1,192 crore, registering a YoY growth of 43.2% while PAT (Profit After Tax) for the year surged 92.9% to ₹61.2 crore.
Anthony Montalbano, CEO, Cyient DLM said, “Cyient DLM’s business focus remains on strengthening our capabilities and expanding our customer base. The robust growth for this year was led by the Aerospace and Defence (A&D) segments. Large deals in A&D constitute the major portion of the order book and pipeline and are expected to contribute towards FY25 and FY26 growth."
Cyient DLM’s share price also hit its 52-week high of ₹882.90 on February 26 this year and its 52-week low of ₹401 on July 10 of last year. At the current market price of ₹779.55, Cyient DLM’s share price has soared 94.4% from its 52-week low level.
Brokerage firm, JM Financial, maintained a ‘buy’ call on the stock but trimmed the target price to ₹887 from ₹925 earlier. JM Financial has also said Cyient DLM's Q4FY24 numbers were broadly in line with its estimates and it remains positive on the stock due to the addition of new logos, global tailwinds and increased offering of value-added services positively impacting the revenue.
The brokerage firm has also pointed out that the margin expansion was led by an increasing share from higher margin segments and customers, and a higher share of export, is another positive factor. It also believes inorganic expansion is on the cards as the company is yet to utilize IPO proceeds. JM Financial expects revenue, EBITDA and PAT CAGR of 31%, 43% and 60%, respectively, over FY24-26E with OPM of 9.6%, 11.1% in FY25E and FY26E and revised YoY earnings growth of 63% and 57% in FY25E and FY26E respectively.
The precision machining facility in Bengaluru will cater to incremental demand from existing customers and will enable new opportunities and partnerships. The new EMS facility in Mysuru will focus on growth in the critical medical and industrial sectors.
Cyient DLM's outlook for FY25 continues to be strong and the company expects strong growth backed by its order book and strong relationships with key clients. The company's focus will be on expanding its geographic footprint globally through inorganic expansion.
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