Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Cyient DLM Limited (NSE:CYIENTDLM) After Its First-Quarter Report

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NSEI:CYIENTDLM

Cyient DLM Limited (NSE:CYIENTDLM) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Cyient DLM reported ₹2.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹1.33 beat expectations, being 2.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Cyient DLM

NSEI:CYIENTDLM Earnings and Revenue Growth July 25th 2024

Taking into account the latest results, the current consensus from Cyient DLM's five analysts is for revenues of ₹15.7b in 2025. This would reflect a major 27% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 62% to ₹13.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.1b and earnings per share (EPS) of ₹14.35 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹822 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Cyient DLM, with the most bullish analyst valuing it at ₹930 and the most bearish at ₹580 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 38% growth on an annualised basis. That is in line with its 40% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So although Cyient DLM is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹822, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Cyient DLM. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cyient DLM going out to 2027, and you can see them free on our platform here..

You can also see whether Cyient DLM is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.