Shares of this multibagger IT stock jumped 6 percent in Friday’s trading session after the company partnered with a leading Japanese company for Advanced Air Mobility. In the past month, the company’s stock has risen more than 15 percent.
With a market capitalization of Rs 25,187.27 crores, the stocks of Cyient Limited started their trading session on Friday at Rs 2,193.75 and currently trade at Rs 2,276.70, gaining approximately 6 percent compared to the previous close of Rs 2,150.90 apiece.
Such stock price movements are observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) intimated that it has entered into a memorandum of understanding (MoU) with “SkyDrive Inc”, a leading eVTOL aircraft manufacturer based in Japan, for advanced air mobility.
As per the MoU, both companies have agreed to work across product development, engineering, manufacturing, and digital services.
Urban Air Mobility (UAM) offers seamless as well as rapid transportation, helping to mitigate various challenges faced in urban areas. As per estimates, the UAM aircraft market is expected to grow to around $25-30 billion by 2030.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 158 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.58 lakhs.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and after-tax profits showed positive movements with the former moving up from Rs 1,686 crores during Q1FY23-24 to Rs 1,778 crores during Q2FY23-24, and the latter, during the same period, rose from Rs 169 crores to Rs 183 crores.
Due to an increase in annual operating costs, the basic profitability ratios such as return on equity (RoE) and return on capital employed (RoCE) decreased in numbers with the former shifting down from 16.75 percent during FY21-22 to 14.83 percent during FY22-23, and the latter, during the same horizon, reduced from 20.92 percent to 18.29 percent.
The latest shareholding pattern data, as per the September 2023 quarter, portrays the company’s Promoters holding a 23.2 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 35.71 percent in the company.
As per the recent presentations, the company’s business segments showcase a balanced portfolio with 31 percent under Aero and Rail, 28 percent under Mining, Utilities and Energy, 23 percent under Fiber and Wireless, and 18 percent under Automotive Semicon, Health Care.
Cyient Limited is engaged in the business of providing a variety of information technology (IT) and engineering services. Deriving a majority of revenue from the American regions, the company serves a wide range of industries such as semiconductors, healthcare, aerospace and defense, communications, etc.
Written by Amit Madnani
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