NSEI:CYIENT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

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: CYIENT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

CYIENT

12.3%

IN Software

1.4%

IN Market


1 Year Return

-60.4%

CYIENT

-49.7%

IN Software

-30.7%

IN Market

Return vs Industry: CYIENT underperformed the Indian Software industry which returned -48.2% over the past year.

Return vs Market: CYIENT underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

CYIENTIndustryMarket
7 Day1.9%12.3%1.4%
30 Day-45.6%-34.1%-24.8%
90 Day-47.7%-35.9%-30.6%
1 Year-57.7%-60.4%-48.9%-49.7%-29.3%-30.7%
3 Year-46.9%-52.2%-47.0%-51.5%-18.1%-22.6%
5 Year-48.3%-55.0%-38.4%-47.2%-7.2%-12.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CYIENT (₹231.55) is trading below our estimate of fair value (₹372.63)

Significantly Below Fair Value: CYIENT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CYIENT is good value based on its PE Ratio (5.4x) compared to the Software industry average (7.5x).

PE vs Market: CYIENT is good value based on its PE Ratio (5.4x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: CYIENT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CYIENT is overvalued based on its PB Ratio (1x) compared to the IN Software industry average (0.7x).


Next Steps

Future Growth

How is Cyient forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CYIENT's forecast earnings growth (11.5% per year) is above the savings rate (6.5%).

Earnings vs Market: CYIENT's earnings (11.5% per year) are forecast to grow slower than the Indian market (19.5% per year).

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

Revenue vs Market: CYIENT's revenue (7.2% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: CYIENT's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CYIENT's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Cyient performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CYIENT has high quality earnings.

Growing Profit Margin: CYIENT's current net profit margins (10.5%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: CYIENT's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: CYIENT's earnings growth over the past year (12.8%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: CYIENT earnings growth over the past year (12.8%) exceeded the Software industry -4%.


Return on Equity

High ROE: CYIENT's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is Cyient's financial position?


Financial Position Analysis

Short Term Liabilities: CYIENT's short term assets (₹25.1B) exceed its short term liabilities (₹10.8B).

Long Term Liabilities: CYIENT's short term assets (₹25.1B) exceed its long term liabilities (₹5.2B).


Debt to Equity History and Analysis

Debt Level: CYIENT's debt to equity ratio (12.6%) is considered satisfactory.

Reducing Debt: CYIENT's debt to equity ratio has increased from 2.5% to 12.6% over the past 5 years.

Debt Coverage: CYIENT's debt is well covered by operating cash flow (116.7%).

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


Balance Sheet

Inventory Level: CYIENT has a high level of physical assets or inventory.

Debt Coverage by Assets: CYIENT's debt is covered by short term assets (assets are 7.7x debt).


Next Steps

Dividend

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

6.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CYIENT's dividend (6.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: CYIENT's dividend (6.45%) is in the top 25% of dividend payers in the Indian market (4.06%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), CYIENT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CYIENT's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Bodanapu Ganesh Krishna (43yo)

6s

Tenure

₹103,938,791

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. Mr. Krishna served as the Preside ...


CEO Compensation Analysis

Compensation vs Market: Bodanapu Ganesh's total compensation ($USD1.38M) is above average for companies of similar size in the Indian market ($USD356.20K).

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 Chairman6yrs₹81.13m1.32% 338.2m
Bodanapu Ganesh Krishna
MD, CEO & Executive Director6yrs₹103.94m1.74% 445.2m
Ajay Aggarwal
Chief Financial Officer9.08yrs₹28.18m0.041% 10.6m
Sudheendhra Putty
Chief Compliance Officer & Company Secretaryno data₹2.93m0.00015% 38.4k
Karthikeyan Natarajan
President & COO0.083yrno datano data
Piyush Parekh
Manager of Investor Relationsno datano datano data
Prabhakar Atla
Senior Vice President of Communications & Rail Transportation1.25yrsno datano data
N. Joseph
Senior Vice President of Corporate Strategy & Marketing4yrsno datano data
P. N. S. Narasimham
Senior VP & Global Head of Human Resources3.92yrsno datano data
John Renard
Head of Portfolio Business Unit & President of EMEA4yrsno datano data

4.0yrs

Average Tenure

51yo

Average Age

Experienced Management: CYIENT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Venkat Rama Mohan Bodanapu
Founder & Executive Chairman6yrs₹81.13m1.32% 338.2m
Bodanapu Ganesh Krishna
MD, CEO & Executive Director6yrs₹103.94m1.74% 445.2m
Som Mittal
Independent Director6yrs₹1.20m0.0046% 1.2m
Alain De Taeye
Non-Executive & Non-Independent Director10yrsno datano data
Murugappan Murugappan
Non-Independent & Non-Executive Director22.67yrs₹1.20m0.027% 7.0m
Vivek Gour
Additional Independent Director1yrno data0.0046% 1.2m
Peter Longo
Chairman of Cyient Inc0.42yrno datano data
Vikas Sehgal
Additional Independent Director1.5yrs₹1.41m0.16% 41.0m
Matangi Gowrishankar
Additional Independent Director1yrno datano data
Vinai Thummalapally
Independent Director3yrs₹2.81mno data

4.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CYIENT's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CYIENT insiders have bought more shares than they have sold 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: CYIENT
  • Exchange: NSEI
  • Founded: 1991
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹25.590b
  • Shares outstanding: 109.97m
  • Website: https://www.cyient.com

Number of Employees


Location

  • Cyient Limited
  • Plot No. 11
  • Software Units Layout
  • Hyderabad
  • Andhra Pradesh
  • 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 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, 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 comprising data management, IT, network engineering and operation, utility system, IT service management, and SD wide area network services. In addition, it offers geospatial services, including 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, infrastructure, and mining 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:47
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.