Motilal Oswal has given a "BUY" rating to Cyient with a target price of INR 2,100, indicating an 18% potential increase.

In the second quarter of FY25, Cyient's DET business generated revenues of USD 173 million, showing a 1.3% increase compared to the previous quarter, surpassing the estimated growth of 1.0%. While most verticals experienced revenue growth, the Sustainability segment declined by 6.45% QoQ.

The EBIT margin for the DET business improved by 75 basis points QoQ to 14.2%, exceeding expectations of 12.7%. However, service order intake decreased by 14.7% YoY to USD 156.8 million. The DET PAT increased significantly by 24.9% QoQ and 2.2% YoY, reaching INR 1,768 million, which was higher than the estimated INR 1,427 million.

In the first half of FY25, DET revenue, EBIT, and PAT declined by 2.3%, 17.0%, and 7.3% respectively compared to the same period last year. The second half of FY25 is expected to see growth, with projected increases in revenue and PAT by 2.8% and 4.9% respectively, while EBIT is expected to decline by 2.3% YoY.

Cyient is viewed positively due to its exposure to strong sectors like aerospace and sustainability.