Cyient Ltd.
NSE: CYIENTCyient Ltd.: A 30-second snapshot
CYIENT is an NSE-listed IT and engineering services company currently priced at Rs 904.70, down 20.3% over 12 months and 32.64% off its 52-week high. Trailing PE of 23.86 sits above sector peers such as INFY (15.57) and TCS (17.59), while ROE of 7.77% and a quality score of 29 rank last among the 6-peer IT cohort. A Rs 720-crore buyback and a 3.54% dividend yield are notable capital allocation events against a backdrop of a 5-year earnings contraction of -67.9%.
P/E
23.9
Forward P/E
12.3
ROE
+7.8%
Debt / Equity
7.00
Profit Margin
+5.9%
Div. Yield
+3.5%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
40/100
News
8 headlines · 3 positive · 2 negative
Cyient slips 4% on posting Q4 results; PAT falls YoY; Motilal retains Sell - Business Standard
Business Standard
Cyient Announces Rs 720-Crore Share Buyback; Check Repurchase Price, Other Details - NDTV Profit
NDTV Profit
Cyient Q4 Results: Earnings Date, Dividend Details, Earnings Call And Share Price Performance - NDTV Profit
NDTV Profit
Cyient DLM Q4 Results | Net profit, margins dip; order book strong - CNBC TV18
CNBC TV18
Cyient Limited Schedules Board Meeting for April 23, 2026 to Approve Q4FY26 Results and Consider Dividend, Buyback Proposals - scanx.trade
scanx.trade
Recent context
- ·Q4 FY26 results (reported April 23-24 2026) showed a year-on-year PAT decline, with the stock falling approximately 4% on the day. Subsidiary Cyient DLM also reported margin compression in the same quarter, though its order book was described as strong.
- ·Cyient announced a Rs 720-crore share buyback alongside its Q4 results, with specific repurchase price terms disclosed — a capital return event occurring at a time when the trailing price is 32.64% off its 52-week high.
- ·Motilal Oswal retained Sell following the Q4 results; news sentiment across 8 articles in the period was 3 positive, 3 neutral, 2 negative, resulting in an overall neutral classification.
Strengths
- +FCF was positive in 4 of the available fiscal years, and the debt trend is classified as falling — suggesting some improvement in the leverage trajectory even though the absolute D/E level of 6.995 remains high.
- +Dividend yield of 3.54% is among the higher income payouts in the IT sector peer group, where large-cap peers typically yield 1-2%.
- +Forward PE of 12.31 versus trailing PE of 23.86 reflects consensus analyst estimates of a meaningful earnings step-up; mean analyst rating of 2.25 across 21 analysts (1-5 scale, lower = more constructive).
- +The Rs 720-crore share buyback announced in April 2026 represents a management signal of confidence in the balance sheet, with a defined repurchase price providing a near-term reference level for the share price.
Weaknesses
- −5-year earnings growth of -67.9% and ROE of 7.77% (only 1 year above 15% in the persistence window) rank last among 6 IT sector peers, with a composite quality score of 29 versus a peer range of 40-60.
- −Debt-to-equity of 6.995 is an outlier in the IT/engineering services peer group where INFY, TCS, WIPRO, HCLTECH, and TECHM all carry substantially lower leverage, raising sensitivity to financing cost changes.
- −Price is 16.7% below the 200-DMA (Rs 1,086.40) and has declined 21.21% over the past 3 months, with three resistance levels overhead at Rs 953.10, Rs 989.50, and Rs 1,169 before the stock returns to its long-run moving average.
- −PAT fell year-on-year in Q4 FY26, triggering a 4% single-session decline on results day; Motilal Oswal retained its stated Sell on the stock following the announcement.
Open questions
- ?Does the forward PE of 12.31 imply a specific earnings-per-share recovery, and what business segment mix or margin assumption underlies that consensus estimate?
- ?How does CYIENT's D/E of 6.995 break down between operating leases, acquisition financing, and working-capital debt — and what is the repayment timeline relative to current FCF generation?
- ?Is the 5-year earnings contraction of -67.9% concentrated in one or two fiscal years (e.g., impairment, restructuring), or does it reflect a sustained compression of core engineering-services margins?
- ?What is the strategic rationale for a Rs 720-crore buyback at a time when leverage is elevated — and how does management reconcile capital return with the debt reduction implied by the falling debt trend?
Peer comparison: IT
Ranks 6 of 6 on qualityTechnical state
Current price
₹904.70
SMA 50
₹880.14
SMA 200
₹1,086.40
RSI (14)
53.1 (neutral)
From 52w high
-32.6%
1Y return
-20.3%
3M return
-21.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity ratio of 6.995 is sharply elevated relative to the IT/engineering services sector, where peers (INFY, TCS, HCLTECH, WIPRO, TECHM) carry minimal leverage. This level of leverage is not typical for an asset-light services model and amplifies earnings sensitivity to financing costs.
- high5-year earnings growth of -67.9% indicates severe and sustained profit contraction over the measurement period. ROE stands at 7.77%, with only 1 year above 15% in the persistence window (consistencyScore 35), ranking last (6 of 6) among listed sector peers on both ROE and quality score (29 vs sector peers ranging 40-60).
- highQuality score of 29 ranks CYIENT 6th of 6 peers in the IT sector grouping. Peer median quality score is approximately 50 (HCLTECH 40, INFY 60, TCS 59, TECHM 46, WIPRO 46), placing CYIENT materially below the peer cohort on composite fundamental quality.
- mediumStock is down 20.3% over 12 months and 21.21% over 3 months, trades 16.7% below the 200-DMA (Rs 1,086.40 vs current Rs 904.70), and is 32.64% off the 52-week high. Price has been below the 200-DMA for an extended period, with resistance levels at Rs 953.10, Rs 989.50, and Rs 1,169.
- mediumMotilal Oswal retained a Sell rating on CYIENT following Q4 results in which PAT fell year-on-year (reported Business Standard, April 24 2026). This is a named-broker event coinciding with a results-driven 4% single-day decline.
Cross-section contradictions
- Forward PE of 12.31 is 48% below the trailing PE of 23.86, implying a sharp earnings recovery priced into consensus estimates — yet the 5-year earnings growth record shows a -67.9% cumulative decline, creating a tension between forward expectations and the persistent historical deterioration.
- A Rs 720-crore share buyback was announced (April 23 2026) despite a debt-to-equity ratio of 6.995 — capital is being returned to shareholders at a time when leverage is materially elevated by sector standards.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days