BUZZ — India’s Cyient DLM set for worst day since debut after Q2 margin contraction
Oct 16 (Reuters) — ** Shares of Cyient DLM fall 16.2% to 863.3 rupees, their steepest fall since 2023 debut * Electronics manufacturing solutions provider's Q2 core profit margin contracts 130bp Y/Y to 8.7%, as the company booked product development costs upfront - Motilal Oswal says * Company's Q2 consolidated revenue up 27% Y/Y; adjusted PAT up 26% Y/Y * Motilal Oswal says record order book keeps company's growth story on track, but upfront investments will keep FY27 core profit margin at 9%-10% * Brokerage cuts FY27 earnings estimate by 16% on lower margin assumptions, keeps FY28/FY29 estimates unchanged; maintains "buy" rating * About 2 mln shares traded, 3.1x the 30-day avg * Stock rated "hold" on avg by 9 analysts; median PT 790 rupees - data compiled by LSEG * Stock up 107% YTD (Reporting by Aleef Jahan in Bengaluru) ((aleefjahan.cs@thomsonreuters.com;)
Oct 16 (Reuters) — ** Shares of Cyient DLM fall 16.2% to 863.3 rupees, their steepest fall since 2023 debut * Electronics manufacturing solutions provider's Q2 core profit margin contracts 130bp Y/Y to 8.7%, as the company booked product development costs upfront - Motilal Oswal says * Company's Q2 consolidated revenue up 27% Y/Y; adjusted PAT up 26% Y/Y * Motilal Oswal says record order book keeps company's growth story on track, but upfront investments will keep FY27 core profit margin at 9%-10% * Brokerage cuts FY27 earnings estimate by 16% on lower margin assumptions, keeps FY28/FY29 estimates unchanged; maintains "buy" rating * About 2 mln shares traded, 3.1x the 30-day avg * Stock rated "hold" on avg by 9 analysts; median PT 790 rupees - data compiled by LSEG * Stock up 107% YTD (Reporting by Aleef Jahan in Bengaluru) ((aleefjahan.cs@thomsonreuters.com;)