Cyient DLM share price plunged over 13% to hit a 52-week low on Wednesday after the company reported weak Q3 results. Cyient DLM shares plunged as much as 13.5% to touch a 52-week low of ₹516.00 apiece on the BSE.
Cyient DLM, the demerged entity of Cyient Ltd, reported a consolidated net profit of ₹10.99 crore in the third quarter of FY25, a decline of 40.4% from ₹18.44 crore in the same quarter last year.
The company’s revenue from operations in Q3FY25 increased 38.37% to ₹444.23 crore from ₹321 crore, year-on-year (YoY).
However, at the operational level, the company EBITDA fell 4%, while margin narrowed to 6.3% from 9.2% YoY, due to higher employee costs and other expenses.
The consolidated order book at ₹2,120 declined 7% YoY.
Cyient DLM kept the guidance of 30% revenue CAGR over FY24-27E unchanged; however, the management did highlight that execution could be lumpy. It also indicated that 1HFY26 could be softer in terms of revenue growth given a large order is being executed quicker than planned, and as is visible, the growth in order book has been weak.
Should you buy Cyient DLM shares?
According to JM Financial, the silver lining here is the margin which, starting 4QFY25, should start seeing an uptick as the share of the lower margin defence order reduces.
“On the margin front, the other highlight is that a 10% EBITDA margin is the near-term aspiration for the core business, while the recently acquired Altek Electronics is already at similar levels,” JM Financial said.
The brokerage firm maintains a ‘Buy’ rating with a target price of ₹740 apiece at 40x March 2027E EPS.
Cyient DLM stock price has fallen over 22% in one month and more than 31% in six months. In the past one year, Cyient DLM shares have declined over 20%.
At 11:15 AM, Cyient DLM shares were trading 11.99% lower at ₹525.00 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
