Mega Bulk Deal: Smallcap Stock Jumps After This Mutual Fund Buys Stake; Kotak Upgrades Rating

Cyient DLM share prices have been soaring over the past few days due to heightened investors' interest and high trading volumes. Motilal Oswal Mutual Fund house bought nearly 5.30 lakh shares of the company on NSE on Thursday.

Cyient DLM scrip witnessed a sudden spike in trading volumes by more than 3.84 times during Friday's intraday trading session. The company stock showcased a similar trend in the last two days, including Thursday, when its price surged nearly 19% during intraday trade.

Cyient DLM share price trend

Shares of the integrated electronics manufacturing solutions provider were trading 2.12% higher at Rs 458 apiece during Friday's intraday trade. The small-cap stock witnessed high trading volume in the morning. At 9:56 am, over 6,344 shares were exchanged hands on BSE today. The company's market capitalisation stood at Rs 3,667.51 crore on BSE. The company stock is recovering from its 52-week low mark of Rs 380.50 per share, touched on 3 March 2025. The company stock was at its 52-week high mark of Rs 872.55 per share on 29 July 2024.

Motilal Oswal Mutual Fund buys Cyient DLM shares

The asset management company purchased 5,30,571 shares of the demerged unit of Cyient Ltd on Thursday. The bulk deal was carried out at a trading price of Rs 426.09 apiece. During the deal, the stock witnessed a high trading volume, consequently rallied to upper circuit price of Rs 464.75 apiece. Apart from Cyient DLM, Motilal Oswal MF bought 2.67 lakh shares of BEML at an average price of Rs 3,048.30 per share, which fuelled the stock price by 17% on Thursday.

Cyient DLM share price outlook

A pickup in European defense ordering is likely to benefit Cyient DLM in the coming months, but muted order backlog, mixed trends related to exports, and declining domestic market revenues are likely to cast a shadow on the company's profit margin in financial year 2025-26, said Kotak Institutional Equities in its analysis report.

Highlighting the impact of Donald Trump's trade tariffs, the brokerage firm noted, "Cyient is expected to be a potential beneficiary of a pickup in European defense ordering. However, a muted order backlog (order book to TTM sales is 1.3X), delay in order finalization by US customers due to tariff uncertainty and lower revenue growth in the domestic market after completion of the BEL order will lead to a weak start to FY2026 for Cyient."

Considering Cyient DLM's stock price correction since January 2025, the brokerage firm has upgraded its view from 'SELL' and reduced its face value to Rs 440 apiece. Factors like orders from new clients and impact of Altek acquisition and further client base expansion would define the company's growth trajectory in the coming months.

"We lower our FY2026/27 EPS estimates by 21%/18%, factoring in a weak order inflow and gradual improvement in margins. We upgrade the stock to REDUCE (from SELL) due to stock price correction with a DCF-based Fair Value of Rs440 (Rs560 earlier), implying 24X P/E on March 2027E EPS," read a note by Kotak Securities.