Cyient DLM Limited

Industrials — Aerospace & Defense · NSE

₹900.10−₹130.00 (−12.62%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cyient DLM Limited provides electronic manufacturing solutions in India, NAM, rest of the Asia-Pacific, Europe, the Middle East, and Africa. It offers integrated, electronics, mechanical, and additive manufacturing, as well as value-added services.

IndustryAerospace & Defense

SectorIndustrials

Employees913

Annual revenue₹1,261 Cr

How does it make money?

Turns over ₹1,261 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 913 employees supports ₹1.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.38 Cr

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 10.4% 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?

10 analysts covering the stock expect revenue to grow about 24.3% and earnings to grow about 55.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.3%

Est. earnings growth+55.8%

Analysts10

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +52% while net margin moved +52% 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+52%

Margin effect+52%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 85.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 79.7x
✗ P/B of 6.70x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

40/ 100

Expensive

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

85.2x

3Y Median

79.7x

40 monthly readings · mean 96.4x · range 31.8x–201.5x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 79.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Fair

79.7x median over 40 months · +7%

vs. sector peers

Fair

88.8x median of 3 peers · -4%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

50.6x

PEG

2.65

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 52% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.0% to 7.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.2% to 10.4% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 90% against revenue up 52% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 52% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 90% against revenue up 52%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 16.0% to 7.2%. 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

1Revenue growth stays above 11% a year✓ 14.9% CAGR
Latest reported year was 26.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹7,145 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

85.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.70x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹10.57

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

26.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

5.7%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹141 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

51.2x

Improving

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

ROA

3.6%

Average

Average asset productivity

Operating Margin

5.8%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

949.5 / 858.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹832 Cr	₹1,192 Cr	₹1,520 Cr	₹1,261 Cr	+14.9%
EBITDA	₹93 Cr	₹137 Cr	₹162 Cr	₹143 Cr	+15.5%
EBITDA Margin	11.2%	11.5%	10.7%	11.3%	—
PAT (Net Profit)	₹32 Cr	₹61 Cr	₹68 Cr	₹73 Cr	+32.2%
EPS	₹4	₹8.39	₹8.56	₹9.23	+32.1%
ROE	16.0%	6.7%	7.2%	7.2%	—
ROCE	20.2%	10.8%	11.1%	10.4%	—
Total Debt	₹356 Cr	₹192 Cr	₹301 Cr	₹172 Cr	-21.5%
Free Cash Flow	₹46 Cr	-₹104 Cr	-₹228 Cr	₹9 Cr	-41.6%

🟢 Revenue has grown at 14.9% a year over 3 years.

🟢 EBITDA has grown at 15.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.3% over 3 years.

🟢 PAT (Net Profit) has grown at 32.2% a year over 3 years.

🟢 EPS has grown at 32.1% a year over 3 years.

🔴 ROE has fallen from 16.0% to 7.2% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 20.2% to 10.4% over 3 years (-9.8 pts).

🟢 Total Debt has shrunk at 21.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 41.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,642 Cr

Total Liabilities

₹630 Cr

Cash & Equivalents

₹80 Cr

Operating Cash Flow

₹54 Cr

Capex

-₹45 Cr

Shareholding (proxy)

Institutional Holding

25.5%

Insider Holding

52.1%

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 4 Sell

Target Price (Mean)

₹731.1

-18.8% vs CMP

Target Range

₹380 – ₹1,320

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

1 positive5 mixed

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.

Stock Crash: Outperforming digital engineering stock falls most since listing on Q2 margin hit

CNBC TV18, 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 DLM shares tumble 19% as EBITDA margin falls, profit rises 6% YoY in Q2; check numbers

Upstox, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

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 DLM Share Price Falls 19% After Q2: Targets Compared

Univest, 16 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.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingRisk

WeakBusiness Quality · Profitability · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑