Cyient Limited

Industrials — Conglomerates · NSE

₹1,189.90+₹0.10 (+0.01%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Cyient Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Cyient Limited provides geospatial, engineering design, manufacturing, networks and operations, data transformation, and analytic services in North America, Europe, Middle East, and the Asia Pacific.

IndustryConglomerates

SectorIndustrials

Employees12,049

Annual revenue₹7,268 Cr

How does it make money?

Turns over ₹7,268 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 12,049 employees supports ₹60.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 55.8% and earnings to grow about 29.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+55.8%

Est. earnings growth+29.7%

Analysts12

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved -31% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+21%

Margin effect-31%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.5% — barely ahead of inflation
✗ Profit has declined at 6.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 32.4% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.0x

3Y Median

29.7x

40 monthly readings · mean 27.8x · range 13.6x–49.1x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 18% above its 3y median of 29.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 61% below the peer median of 88.8x.

vs. its own history

Fair

29.7x median over 40 months · +18%

vs. sector peers

Cheap

88.8x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 65% over 3 years.
Cash generation is improving
Free cash flow is up 42% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.8% to 7.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.3% to 10.5% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 7.53x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 50% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 65% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.5% to 14.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.53x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 14.8% to 7.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 21.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹690 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹12,387 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹34.04

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

7.53x

High

High leverage

Revenue Growth (YoY)

21.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-32.4%

Falling

Profits are shrinking

Dividend Yield

2.69%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹690 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.0%

Average

Average margins

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

2.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1115.4 / 1042.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,016 Cr	₹7,147 Cr	₹7,360 Cr	₹7,268 Cr	+6.5%
EBITDA	₹1,054 Cr	₹1,376 Cr	₹1,224 Cr	₹1,082 Cr	+0.9%
EBITDA Margin	17.5%	19.3%	16.6%	14.9%	—
PAT (Net Profit)	₹514 Cr	₹683 Cr	₹616 Cr	₹428 Cr	-6.0%
EPS	₹46.71	₹61.71	₹55.51	₹38.54	-6.2%
ROE	14.8%	16.0%	11.6%	7.5%	—
ROCE	17.3%	19.4%	15.3%	10.5%	—
Total Debt	₹1,218 Cr	₹788 Cr	₹513 Cr	₹431 Cr	-29.3%
Free Cash Flow	₹486 Cr	₹641 Cr	₹686 Cr	₹690 Cr	+12.3%

🟢 Revenue has grown at 6.5% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.9% a year).

🔴 EBITDA Margin has fallen from 17.5% to 14.9% over 3 years (-2.6 pts).

🔴 PAT (Net Profit) has shrunk at 6.0% a year over 3 years.

🔴 EPS has shrunk at 6.2% a year over 3 years.

🔴 ROE has fallen from 14.8% to 7.5% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 17.3% to 10.5% over 3 years (-6.8 pts).

🟢 Total Debt has shrunk at 29.3% a year over 3 years.

🟢 Free Cash Flow has grown at 12.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,324 Cr

Total Liabilities

₹2,161 Cr

Cash & Equivalents

₹1,452 Cr

Operating Cash Flow

₹787 Cr

Capex

-₹98 Cr

Shareholding (proxy)

Institutional Holding

52.1%

Insider Holding

25.3%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹32

Ex-Dividend Date

24 Oct 2025

Analyst Consensus

Recommendations

13 Buy · 4 Hold · 4 Sell

Target Price (Mean)

₹1,086.05

-8.7% vs CMP

Target Range

₹820 – ₹1,450

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Cyient shares rocket 8% after investor day, but brokerages see up to 24% downside. Here’s why

The Economic Times, 26 Aug

Cyient DLM shares crash 12% despite Q2 profit growth: 3 reasons, brokerages set targets; should you buy?

Livemint, 18 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Cyient Ltd. Share Price Near 52-Week High, Valuation View

Univest, 14 Oct

Cyient DLM share price crashes 19% after Q2 results but up 213% from 52-week low: Should you buy? Check target prices

TradingView, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Cyient DLM tanks 19% on huge volumes post Q2 results; here's why

Business Standard, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Cyient (CYIENT) Share/Stock Price Live, NSE

TechGraph, 10 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑