Cyient Limited provides geospatial, engineering design, information technology (IT) solutions, and data analytic services in India and internationally.
The last earnings update was 63 days ago.
Discounted Cash Flow Calculation for BSE:532175 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:532175 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Cyient's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cyient's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
Cyient's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Cyient's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Bodanapu G.V. Krishna has been the Chief Executive Officer and Managing Director of Cyient Limited (formerly, Infotech Enterprises Ltd) since April 24, 2014. Mr. Krishna served as the President and Chief Operating Officer of Infotech Enterprises Ltd. until April 24, 2014. Mr. Krishna served as the President of Engineering at Infotech Enterprises Ltd. and as its Senior Vice President and Head of Engineering. Mr. Krishna served as a Senior Vice President of Engineering at Infotech Enterprises Ltd. and served as its Senior Vice President of MFG. He has been with Infotech Enterprises Ltd. since 2001. He served as Vice President - Strategy and Business Development at Infotech Enterprises Ltd. since August 2006. He has been an Executive Director of Cyient Limited since 2014. He has been a graduate in Electrical Engineering from Purdue University, USA and Masters in Business Administration from the Kellogg Business School, North Western University, USA.
Bodanapu G.'s compensation has increased by more than 20% in the past year.
Bodanapu G.'s remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Cyient management team is about average.
B. V. R. Reddy
Founder & Executive Chairman
Bodanapu G. Krishna
MD, CEO & Executive Director
President & CFO
Chief Compliance Officer & Company Secretary
Senior VP of Communications Business Unit & President of APAC
Senior Vice President of Corporate Strategy & Marketing
Senior Vice President of Global Human Resources
CIO and Senior VP of Utilities & Geospatial Business Unit
Senior Vice President of Aerospace & Defense Business Unit
Senior Vice President of Medical Technology & Healthcare Business Unit
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Cyient board of directors is about average.
Cyient Limited provides geospatial, engineering design, information technology (IT) solutions, and data analytic services in India and internationally. The company operates in three segments: Utilities, Geospatial and Communications; Manufacturing and Industrial Products; and Design Led Manufacturing. It offers engineering services, such as mechanical engineering, plant engineering, aftermarket, manufacturing engineering, embedded software and electronic, engineering application software development, electrical engineering, rail signaling and electrification, semiconductor design services, and intellectual property and allied services. The company also provides electronic and mechanical manufacturing services; analytics, big data consulting, and IoT and M2M services; and network and operation services, including data management, IT, network engineering and operation, utility system, IT service management, and SD wide area network services. In addition, it offers geospatial services comprising acquisition, remote sensing, photogrammetry, navigational data mapping, navigational database generation, and location-based services. Further, the company provides digitization of drawings and maps, computer aided design/engineering, design and modelling, repair development engineering, reverse engineering application software development, software products development, consulting, analytics, and implementation services. It serves aerospace and defense, communications, rail transportation, medical technology and healthcare, utilities, navigation, heavy equipment and industrial, power generation, oil and gas, semiconductor, mining, and infrastructure industries. The company was formerly known as Infotech Enterprises Limited and changed its name to Cyient Limited in May 2014. Cyient Limited was founded in 1991 and is headquartered in Hyderabad, India.
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