Smallcap stock which is one of the leading electronics system design and manufacturing player in the aerospace, defence, and other emerging sectors in focus, after acquiring a new US Based firm to strengthen its offerings in Industrial, Medical, and Defence sectors.
Price Action
With a market capitalization of Rs. 5,488 Crores, the shares of Cyient DLM Limited were trading at Rs. 692.10 per equity share, up 0.25 percent from its previous day’s close price of Rs. 690.40.
What Happened
In line with its plans of expanding its presence in the North American market and strengthening its capabilities across key sectors, The Board of Directors of Cyient DLM Limited has approved the acquisition of a 100 percent stake in Altek Electronics Inc. through its wholly-owned subsidiary Cyient DLM Inc. This would strengthen Cyient DLM’s offerings in the Industrial, Medical, and Defence sectors.
Altek Electronics is an electronic manufacturing services (EMS) provider in the United States, it is involved in the entire product life cycle from prototype to end-of-life services, specializing in PCBA assembly, and upper-level assembly serving various industries, including medical & healthcare, industrial, telecommunications, defence, and many others.
Through this acquisition, Cyient DLM will also significantly expand its manufacturing capacity adding an additional 80,000 sft of manufacturing area to cater to its clients globally.
Management message
Krishna Bodanapu, Executive Chairman of Cyient DLM, commented, “This acquisition is a pivotal moment for Cyient DLM. It expands our global footprint, brings us closer to our strategic customers, and significantly strengthens our capabilities.
With this acquisition, Cyient DLM is not only broadening its reach into the Medical & Healthcare and Industrial sectors but also bolstering its capabilities for the Defense sector through ITAR compliance.
Altek Electronics’ proven track record with key industry-leading clients will accelerate Cyient DLM’s ability to deliver high performance, reliable services across these sectors”.
About the Company
Cyient DLM Limited is one of the leading electronics system design and manufacturing player, which provides system design, integration, testing, and manufacturing of electronic components and subsystems for original equipment manufacturers (OEMs) in the aerospace defence and other emerging sectors.
Coming to the revenue distribution from industry-specific as of Q1FY25, Aerospace 57 percent, Defence 26 percent, MedTech 10 percent, Industrial 5 percent and Rail 2 percent
Financials and Ratios
Its Revenue from operations grew by 18.76 percent from Rs. 217 Crores in Q1FY24 to Rs. 258 Crores in Q1FY25, accompanied by profits of Rs. 5 Crores to Rs. 11 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 11.1 percent, and a return on capital employed (ROCE) of 14.1 percent. It has reported a debt-to-equity ratio of 0.21.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
