Shares of Cyient experienced a significant decline in early trading on Friday, falling 4.16% to ₹897 by 10:19 AM, following a sharp sequential and year-on-year decrease in its quarterly profits. The stock initially opened at ₹937, reached a daytime high of that price, and subsequently dropped to a low of ₹890.15, with sell orders surpassing buy orders—58% sell versus 42% buy on the exchange.
In its Q4 earnings report, the company revealed a consolidated net profit of ₹54.80 crore, a substantial decrease from ₹91.8 crore in the previous quarter. However, revenue increased to ₹1,930 crore from ₹1,850 crore quarter-on-quarter. While the reported figures were deemed neutral by market analysts, the profit shortfall negatively impacted investor sentiment.
Morgan Stanley maintained an Underweight rating for the stock with a target price of ₹1,050, citing that while Transportation and Mobility sectors performed better than expected, the decrease in Strategic Units was steeper than anticipated. The brokerage acknowledged that the upcoming share buyback might provide some support, noting that the stock is currently undervalued. However, they emphasized that investors are likely to seek consistent growth in the Digital Engineering and Technology (DET) business before showing renewed interest.
Choice International maintained a medium-term positive outlook with a sum-of-the-parts target price of ₹1,250 based on fiscal year 2028 estimates. They highlighted stable profit margins and an improving order intake as positive indicators. The firm noted the buyback offer at ₹1,125 per share, approximately 20% above Friday’s trading price, as potentially accretive to earnings per share and supportive of market sentiment, though they have not yet factored this into estimates pending clarification on acceptance ratios.
The board has approved a buyback plan covering up to 6.4 million shares, valued at ₹720 crore, through a tender offer, with the promoters opting out entirely. Cyient’s total market capitalization was approximately ₹9,971 crore, and the stock has declined nearly 28% over the past year, significantly underperforming the Nifty 500’s 2% gain during the same timeframe.
Published on April 24, 2026.
