The shares of the leading electronics system manufacturer gained up to 5 percent after HDFC mutual fund bought 4,00,000 equity shares in the company.
With a market capitalization of Rs 5,556.19 crore, the shares of Cyient DLM Ltd were trading at Rs 700.60 per share, increasing around 5 percent as compared to the previous closing price of Rs 669.10 apiece.
Reason for rise:-
Today, the shares of the company have seen bullish movement after HDFC mutual fund bought 4,00,000 equity shares which is equivalent to 0.50 percent in the company, however, Morgan Stanley Asia Singapore Pte – ODI sold 4,34,017 equity shares represents 0.54 percent. This transaction happened at an average price of Rs 667 apiece.
Financial Condition:-
Looking forward to the company’s financial performance, revenue magnified by 19 percent from Rs 217 crore in Q1FY24 to Rs 258 crore in Q1FY25, but during the same period, net profit magnified significantly by 120 percent from Rs 5 crore to Rs 11 crore.
In FY24, Cyient DLM Ltd’s debt-to-equity ratio dropped significantly from 1.80x in FY23 to 0.21x. Borrowings decreased from ₹337 crore in FY22 to ₹192 crore in FY24. The company currently has an order backlog of ₹2,170 crore.
The operating profit margin improved from 8.97% in FY23 to 9.77% in FY24, while the net profit margin rose from 3.81% to 5.13%. The return on equity (ROE) and return on capital employed (ROCE) are 11.1% and 10.6%, respectively.
Management outlook:-
The company faced temporary supply chain challenges in Q1 but expects strong Q2 results with improved visibility. While industrial sector demand softened, it’s anticipated to recover in H2 from a key client. Management remains confident in achieving 30% CAGR and improving margins as volumes and business mix shift.
Expansion plan:-
The company plans expansion in North America and EMEA, targeting growth in electric vehicles, infrastructure, and energy sectors. It aims to capitalize on growing EMS destinations like India and ramp up a semiconductor program this fiscal year. Additionally, it seeks EBITDA-accretive acquisitions aligned with its business.
Shareholding Pattern:-
According to the latest shareholding pattern, the Promoters hold a 66.66 percent stake in the company, Foreign Institutional Investors (FII) hold a 5.14 percent stake, while Retail Investors hold a 10.75 percent in Oriental Rail Infra.
Company profile:-
Cyient DLM Ltd is an integrated electronic manufacturing services company and solutions provider. The Company’s geographical segments include Domestic (Within India) and Overseas (Outside India). Its electronic manufacturing services are provided as build-to-print (B2P) and build-to-specification (B2S) services for its clients.
Written by:- Abhishek Singh
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