Cyient, the Indian multinational technology company formerly known as Infotech Enterprises Limited, has been on a tear, delivering more than 140% returns to investors in just one year. This remarkable performance has attracted attention from both retail and institutional investors, raising the question: is there still room for growth?
Charting a Steady Climb
The daily chart of Cyient’s stock paints a clear picture of its robust performance.
The stock price consistently follows the Exponential Moving Averages (EMAs), with only two brief dips below the 20 EMA throughout the entire year. Each time, it rebounded even stronger, maintaining a pattern of higher highs and higher lows. Starting at around Rs 815 per share in January 2023, the stock has now soared above Rs 2000 per share, delivering substantial returns to investors.
Q2 FY 2023-24: Robust Financial Performance
In the second quarter of the fiscal year 2023-24, Cyient Limited reported a staggering 132.11% increase in consolidated net profit, reaching Rs 183.6 crore compared to Rs 79.1 crore in the corresponding quarter of the previous year. The revenue from operations for Q2FY24 surged by 27.38% to Rs 1,778.5 crore, showcasing the company’s robust financial health. A notable move was the declaration of an interim dividend of Rs 12 per equity share, reflecting Cyient’s commitment to rewarding its shareholders.
Analyst Meeting Highlights Growth Drivers
Cyient’s recent analyst meeting shed light on the key factors propelling its growth. The company implemented revised sales incentives, implemented a focus on large deals, and adopted a scalable delivery model. Additionally, its enhanced capabilities in digital, embedded engineering, and VLSI have significantly contributed to the growth of the DET segment.
Potential Opportunities
With its strong fundamentals and positive outlook, Cyient presents a compelling investment opportunity. The company’s focus on digital transformation, its strong track record of delivering growth, and its expertise in key areas position it well to capitalize on future trends. However, it is advisable for investors to engage in comprehensive research, ensuring that their investment decisions align harmoniously with their risk tolerance and financial goals.
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