BSE:532175

Stock Analysis Report

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Executive Summary

Cyient Limited provides geospatial, engineering design, information technology (IT) solutions, and data analytic services in North America, Europe, and the Asia Pacific. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


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Share Price & News

How has Cyient's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532175 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 532175's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

8.2%

532175

3.6%

IN Software

2.3%

IN Market


1 Year Return

17.1%

532175

42.7%

IN Software

7.4%

IN Market

Return vs Industry: 532175 underperformed the Indian Software industry which returned 41.2% over the past year.

Return vs Market: 532175 exceeded the Indian Market which returned 7.6% over the past year.


Shareholder returns

532175IndustryMarket
7 Day8.2%3.6%2.3%
30 Day7.7%2.8%8.1%
90 Day22.0%19.5%10.0%
1 Year21.2%17.1%48.9%42.7%9.4%7.4%
3 Year-11.9%-19.1%14.9%3.6%5.2%0.1%
5 Year8.1%-4.7%15.4%-0.2%52.4%41.0%

Long-Term Price Volatility Vs. Market

How volatile is Cyient's share price compared to the market and industry in the last 5 years?


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Valuation

Is Cyient undervalued compared to its fair value and its price relative to the market?

15.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532175 (₹462.55) is trading above our estimate of fair value (₹193.63)

Significantly Below Fair Value: 532175 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532175 is poor value based on its PE Ratio (16x) compared to the IN Software industry average (13.3x).

PE vs Market: 532175 is good value based on its PE Ratio (16x) compared to the Indian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: 532175 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 532175 is overvalued based on its PB Ratio (1.9x) compared to the IN Software industry average (1.4x).


Next Steps

Future Growth

How is Cyient forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532175's forecast earnings growth (17.1% per year) is above the savings rate (7.2%).

Earnings vs Market: 532175's earnings (17.1% per year) are forecast to grow slower than the Indian market (24.3% per year).

High Growth Earnings: 532175's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532175's revenue (8.3% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 532175's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532175's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Cyient performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532175 has high quality earnings.

Growing Profit Margin: 532175's current net profit margins (7.6%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: 532175's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 532175's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532175 had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Software industry average (18%).


Return on Equity

High ROE: 532175's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Cyient's financial position?


Financial Position Analysis

Short Term Liabilities: 532175's short term assets (₹26.6B) exceed its short term liabilities (₹11.5B).

Long Term Liabilities: 532175's short term assets (₹26.6B) exceed its long term liabilities (₹4.4B).


Debt to Equity History and Analysis

Debt Level: 532175's debt to equity ratio (14.8%) is considered satisfactory.

Reducing Debt: 532175's debt to equity ratio has increased from 10.9% to 14.8% over the past 5 years.

Debt Coverage: 532175's debt is well covered by operating cash flow (227.3%).

Interest Coverage: 532175 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Cyient current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532175's dividend (3.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: 532175's dividend (3.24%) is in the top 25% of dividend payers in the Indian market (2.16%)


Stability and Growth of Payments

Stable Dividend: 532175's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532175's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), 532175's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532175's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Bodanapu Ganesh Krishna (44 yo)

6.58yrs

Tenure

₹105,789,391

Compensation

Mr. Bodanapu Ganesh Venkat Krishna has been the Chief Executive Officer and Managing Director of Cyient Limited (formerly, Infotech Enterprises Ltd) since April 24, 2014. He joined Cyient Limited as a Sale...


CEO Compensation Analysis

Compensation vs Market: Bodanapu Ganesh's total compensation ($USD1.43M) is above average for companies of similar size in the Indian market ($USD384.25K).

Compensation vs Earnings: Bodanapu Ganesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Venkat Rama Mohan Bodanapu
Founder & Executive Chairman6.58yrs₹59.98m0.34%
₹ 172.9m
Bodanapu Ganesh Krishna
MD, CEO & Executive Director6.58yrs₹105.79m1.74%
₹ 885.0m
Ajay Aggarwal
President & CFO0.67yr₹27.98m0.027%
₹ 13.6m
Sudheendhra Putty
Chief Compliance Officer & Company Secretaryno data₹3.29m0.00015%
₹ 76.3k
Karthikeyan Natarajan
President & COO0.67yrno data0.020%
₹ 9.9m
Piyush Parekh
Manager of Investor Relationsno datano datano data
Felice Gray-Kemp
Senior VP & Global General Counsel0.50yrno datano data
Prabhakar Atla
Senior Vice President of Communications & Rail Transportation1.83yrsno datano data
Meenu Bagla
VP & Chief Marketing Officer0.42yrno datano data
P. N. S. Narasimham
Senior VP & Global Head of Human Resources4.5yrsno datano data
John Renard
President of Portfolio Business Unit & President of EMEA4.58yrsno datano data
Sunil Makkena
Senior Vice President of Operationsno datano datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: 532175's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Venkat Rama Mohan Bodanapu
Founder & Executive Chairman6.58yrs₹59.98m0.34%
₹ 172.9m
Bodanapu Ganesh Krishna
MD, CEO & Executive Director6.58yrs₹105.79m1.74%
₹ 885.0m
Som Mittal
Independent Director6.58yrs₹1.50m0.0046%
₹ 2.3m
Alain De Taeye
Non-Executive & Non-Independent Director10.58yrsno datano data
Murugappan Murugappan
Non-Independent & Non-Executive Director23.25yrs₹1.50m0.027%
₹ 13.9m
Vivek Gour
Independent Director1.58yrs₹1.50m0.0046%
₹ 2.3m
Peter Longo
Chairman of Cyient Inc1yrno datano data
Vikas Sehgal
Independent Director2.08yrs₹3.52m0.77%
₹ 389.5m
Ramesh Abhishek
Independent Director0.25yrno datano data
Matangi Gowrishankar
Independent Director1.58yrs₹1.50mno data
Vinai Thummalapally
Independent Director3.58yrs₹3.52mno data

3.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 532175's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532175 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cyient Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cyient Limited
  • Ticker: 532175
  • Exchange: BSE
  • Founded: 1991
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹50.867b
  • Shares outstanding: 109.97m
  • Website: https://www.cyient.com

Number of Employees


Location

  • Cyient Limited
  • Plot No. 11
  • Software Units Layout
  • Hyderabad
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532175BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998
CYIENTNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1998
632175BSE (Mumbai Stock Exchange)INR5(FOREIGN PREMIUM)ININRJun 2018

Biography

Cyient Limited provides geospatial, engineering design, information technology (IT) solutions, and data analytic services in North America, Europe, and the Asia Pacific. The company operates in Services; a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 13:00
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.