HDFC Securities Initiates Buy On Midcap IT Stock, Hits 52-Week High, Recommends 320% Final Dividend

HDFC Securities in its recent report assigned a "Buy" on Cyient Ltd., a midcap IT Sector Stock. The brokerage assigns a target price of Rs 1,310 apiece with a Buy call on the stock. If you buy the stock at the current market price it can fetch up to gains of 13% considering the assigned target price by the brokerage firm. The stock has recently, on April 20, 2023, recommended a final dividend of Rs 16/share i.e 320% for the financial year 2023-23. It has a market capitalisation of Rs 12,822.83 crore.

Stock's Current Market Price, 52-Week Low/High & Returns

Cyient's Stock on NSE last traded at Rs 1,159.65 apiece, up 6.27% from the previous close. The current market price is 2.94% down from its 52 week high. The stock traded its new 52 week high on 21 April 2023 at Rs 1,193.70 apiece, while it recorded its 52 week low on 26 May 2022 at Rs 720 apiece. The stock performed well in the past 3 months, gaining 8.4% in 1 week, 22.48% in 1 month, and 32.7% in 3 months, respectively. It has given 39.47% positive return in 1 year. In the past 3 years, the stock has given a robust 418.51% return. In the past 5 years, it has given 63.3% positive return.

Dividend Recommended

In its exchange filing on April 20, 2023, the board of directors of Cyient Ltd. said, "This is to inform that the Board of Directors of the Company have recommended Final Dividend of INR 16/- per equity share (i.e 320 %) on par value of Rs. 5 per share, for the finanacial year 2022-23."

Changing altitude; guidance impressive

HDFC Securities has said, "We have factored in +15.6/10.7% USD revenue growth for FY24/25E, implying growth of +14/10% in services and +24/16% in DLM respectively. The EBIT margin is estimated at 13.8/14.1% for FY23/24E, resulting in an EPS CAGR of 21% over FY23-25E."

Disclaimer - The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.