Target: ₹810

CMP: ₹700.55

Cyient DLM is a well-integrated EMS solution provider, deriving majority of its revenue (69 per cent in 9MFY24) from the high-margin and critical end-user industry of Aerospace and Defence (A&D).

The global A&D space is poised to grow at a healthy pace (5.9 per cent CAGR over CY22- 26), led by technological advancements, rising defence spending and the emergence of new markets such as space exploration. This is, in turn, translating into higher growth for the A&D EMS industry, led by the growing trend of outsourcing, which provides cost savings and access to advanced technologies.

Cyient DLM is better placed to grab the growing EMS opportunity in this space, leveraging its strong client relation and multi-decade experience in the A&D sector (both domestic and exports). The company’s focus on the domestic defence offset opportunities, alongside its efforts to scale up exports in the aerospace sector, is poised to drive the growth for the company.

Going ahead, we expect Cyient DLM to sustain its growth momentum, aided by: strong order book coupled with healthy order inflows, high customer stickiness and strong promoter heritage.