Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Cyient is engaged in providing global technology services and solutions specialising in geospatial, engineering design, analytics, network and operations solutions.(Source : 202003-01 Annual Report Page No:157)Site:CYIENTMain Symbol:CYIENT
Stock trades at 946.0, above its 50dma 816.37. It also trades above its 200dma 652.3. The stock remains bullish on techicals
The 52 week high is at 920.00 and the 52week low is at 267.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 44.73%
Weakness
– The company has delivered a poor sales growth of 5.96% over past five years.
Competition
– The industry trades at a mean P/E of 33.1x. Happiest Minds trades at the industry’s max P/E of 133.93x. CYIENT trades at a P/E of 28.6x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. CYIENT has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 20.9%. The max 1- month return was given by Happiest Minds: a return of 60.28 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1058.0 cr compared to Rs 992.0 cr for period ended Jun 2020, a rise of 6.7%
Operating Profits reported at Rs 186.0 cr for period ended Jun 2021 vis-vis 99.0 for period ended Jun 2020 .
Operating Margins expanded 760.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 10.44 compared to Rs 9.37 for previous quarter ended Mar 2021 and Rs 7.4 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4199.0 cr for period ended TTM vis-vis sales of Rs 4132.0 cr for the period ended Mar 2021, a growth of 1.6%. The 3 year sales cagr stood at -3.1%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 14.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 397.0 cr for period ended TTM vis-vis sales of Rs 364.0 cr for the period ended Mar 2021, rising 8.3%.
Company reported a poor Net Profit CAGR of -6.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 856.0 cr for period ended Mar 2021 vis-vis Rs 582.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 252% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 6% vis-vis a compounded profit growth of -4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 38.47% vis-vis 35.7% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 16.83% vis-vis 18.15% for Dec 2020
Conclusion
– has been maintaining a healthy dividend payout of 44.73% – The company has delivered a poor sales growth of 5.96% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 816.37 and is trading at 946.0, thus bullish price action wise.
