Cyient: ICICI Securities Bullish on Growth Pivot, Maintains Add Rating — Check Revised Target Price

ICICI Securities Report

According to the ICICI Securities report, the acquisition of Tao Digital, a fast-growing AI-native firm, will enhance revenue predictability and improve margins, with the business already delivering higher profitability than Cyient's core operations. The move is also expected to be earnings accretive over time, driven by strong growth in AI-led services and platform-based offerings. Additionally, the brokerage highlighted that Cyient is taking strategic steps in the right direction, including a shift towards annuity-based revenues and IP-led offerings.

Key Highlights

ICICI Securities maintains 'Add' rating on Cyient Ltd. with a revised target price of Rs 1,040

Acquisition of Tao Digital to enhance revenue predictability and improve margins

Company pivoting towards higher-growth segments, supported by recent acquisitions

Valuations remain attractive, given improving growth profile and ongoing transformation

While near-term growth visibility remains somewhat muted due to weak order disclosures and cautious management commentary, ICICI Securities expects a gradual recovery in revenue and margins over the medium term, supported by strong deal wins, expanding AI opportunities, and scaling of new-age verticals. To read the full report, click on the attachment: Icici Securities Cyient Company Update.pdf

It is essential to note that the views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. The contents of this section do not constitute investment advice, and users should always consult an expert based on their individual needs before making any investment decisions. For more information and latest stories, visit NDTV Profit.

---

*Source context derived from original reporting via Google News Search.*

Source context derived from original reporting via Google News Search.