Multibagger Stock: Domestic brokerage and research firm Motilal Oswal is bullish on IT stock Cyient. Despite a 125% gain so far this year (Year-to-date or YTD), the brokerage firm is expecting further upside in this IT stock.
IT company Cyient on Thursday reported a 44.5% jump in consolidated net profit at Rs 121 crore (as compared to Rs 83.9 crore in the same period a year ago) for the quarter ended September 30, 2021. Its revenue in dollar terms grew 4.6% on a sequential basis.
Motilal Oswal has retained the ‘Buy’ rating for this stock and has kept a target price of Rs 1380 for it. The brokerage firm said, “We are raising our EPS estimate for FY2023 on potentially improved margin performance led by the management’s medium term outlook. We maintain our ‘Buy’ rating at an attractive valuation.”
Motilal Oswal is seeing a strong rebound in Cyient’s ER&D spend due to increase in outsourcing and large deal size. Motilal Oswal said, “We expect Cyient (CYL) FY21– Will provide 14% USD revenue CAGR during 23E.”
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