Motilal Oswal Picks Mid Cap IT Software Stock To Buy Amid Highly Attractive Valuation

Motilal Oswal has recommended investors to buy mid cap IT Software stock, Cyient Ltd with a target price of Rs 1170 apiece. If you buy Cyient Ltd shares at the current market price of Rs 955.20 apiece, you can get potential return of 23%.

The company reported a consolidated total income of Rs 1645.70 crore, up 16.23% from last quarter total income of Rs 1415.90 crore. Check details below:

1. Cyient Ltd Stock Performance & Return

The last trading price of the stock is Rs 955.20 apiece with intraday fall of 1.15%. The stock's 52-week high is Rs 995.05 apiece and 52-week low is Rs 724.00 apiece, respectively. The company has a market capitalisation of Rs 10,563.38 crore.

The stock gave a return of 20% in last 3-months, 12% in last 6-months, and 18% in last 1-year. In last 2-years, it gave return of 45%.

2. Cyient Ltd Valuation

According to Motilal Oswal, "The current valuations at 18x/14x FY23E/FY24E EPS of INR51.9/INR68.6 appear highly attractive giving us more comfort to maintain our BUY rating. Our target multiple of 17xFY24E EPS implies a TP of INR1,170, with 23% potential upside."

CYL's service segment is shaping up quite well with a majority of its growth engines (excluding Rail, Consulting and Utility) sustaining the positive momentum and delivering robust growth of 15% YoY in 9MFY23.

3. Cyient Ltd About

Cyient is a consulting-led, industry-centric, global Technology Solutions company. It enables its customers to apply technology imaginatively across their value chain to solve problems that matter.

Having its headquarters and development facilities in India Company serves a global customer base through its subsidiaries in the United States of America (USA) United Kingdom (UK) Germany Japan Australia Singapore and India, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.