Check Before You Invest : Cyient Ltd

BSE: 532175 NSE: CYIENT ISIN: INE136B01020

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Cyient Ltd belong to?

Cyient Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Cyient Ltd a good quality company?

Cyient Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Cyient Ltd undervalued or overvalued?

Cyient Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Cyient Ltd a good buy now?

Cyient Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Cyient Ltd?

Cyient Ltd revenue growth is 3% for FY-2025, which is below its 5-year CAGR of 10.7%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Cyient Ltd?

Cyient Ltd Return on capital employed is 18.91% for FY-2025, which is below its 5-year historical median of 19.92%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Cyient Ltd?

Cyient Ltd Return on Asset is 8.92%, which is in line with its 5-year historical median of 9.13%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Cyient Ltd?

Cyient Ltd Return on equity is 13.74% for FY-2025, which is below its 5-year historical median of 15.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Cyient Ltd?

Cyient Ltd Cash conversion cycle is 62 days, above its 5-year historical median of 36 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.01	1.01
ROE	13.74	15.8
ROCE	18.91	19.92
Cash Conversion Cycle	62 days	36 days

Q.6 Gross Profit margin of Cyient Ltd?

Cyient Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025, which is in line with its 5-year median of 16.4%, indicating stable margins.

Q.7 Operating Profit Margin of Cyient Ltd?

Cyient Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.53% for FY-2025, which is below its 5-year median of 16.71% indicating decreasing margins.

Q.8 Net Profit Margin of Cyient Ltd?

Cyient Ltd Net Profit Margin is 8.81% for FY-2025, is in line with with its 5-year median of 8.81%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.6	16.4
Operating Profit Margin	15.53	16.71
Net Profit Margin	8.81	8.81

Q.9 Debt to Equity ratio of Cyient Ltd?

Cyient Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cyient Ltd?

Cyient Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Cyient Ltd?

Promoters hold 23.28% of the Cyient Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Cyient Ltd vs industry peers?

Cyient Ltd revenue CAGR is 10.70%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	3	10.9
Gross Profit Growth	-8.5	19
Operating Profit Growth	-11.4	NAN
Net Profit Growth	-7.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.01	0.5
ROE	13.74	5.83
ROCE	18.91	6.79
Cash Conversion Cycle (days)	61.99	47

Valuation & price assessment

Q.1 Stock return of Cyient Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 6.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	6.5%	3.1%	-9.3%	-27%

Q.3 Valuation ratios of Cyient Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22.63	24.53	47.37
Price to Book	1.7	3.14	2.63
Price to Sales	1.33	2.17	4.79
EV to EBITDA	7.67	11.00	16.48

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