Cyient DLM shares trade at 50% discount to peers; worth a buy?
Cyient DLM: At the current valuation of around 21 times 1HFY28E EPS—about a 50 per cent discount to peers—Antique continued to maintain its ‘Buy’ rating on the stock.
- Sep 8, 2025,
- Updated Sep 8, 2025 9:09 AM IST
Antique Stock Broking said Cyient DLM is well-positioned to return to a strong growth trajectory as the company focuses on rebuilding its order book and expanding operating margins. The brokerage noted that management is working on diversifying across geographies and sectors to scale up its currently depleted order pipeline, while also aiming to lift operating margins from 9 per cent in FY25. With adequate infrastructure in place, Cyient DLM can double its revenues without significant capex, Antique said in its fresh note.
At the current valuation of around 21 times 1HFY28E EPS—about a 50 per cent discount to peers—Antique continued to maintain its ‘Buy’ rating on the stock with a target price of Rs 570, valuing it at 28x 1HFY28E EPS.
Green shoots are visible as order inflows gained momentum in Q1FY26, rising 141 per cent year-on-year, largely driven by domestic demand. Antique expects this momentum to sustain, with near-term growth supported by the Indian market and longer-term growth backed by marquee global clients such as Honeywell, Boeing and Thales.
Margins, which were weighed down by low-margin legacy orders from Bharat Electronics Ltd (BEL) in FY25, are expected to recover to double-digit levels from FY26 onwards. Antique projects revenue/EBITDA/PAT growth at a CAGR of 20 per cent/30 per cent/38 per cent over FY25–28, with operating margins of 10.7 per cent, 11.3 per cent and 11.6 per cent in FY26/27/28 respectively.
The order book, which declined from Rs 2,430 crore in FY23 to Rs 1,900 crore in FY25 due to delays in overseas defence and aerospace contracts, improved to Rs 2,130 crore in Q1FY26 on strong domestic inflows. Management expects this trend to continue.
On the acquisition front, Cyient DLM’s purchase of US-based EMS player Altek Electronics for USD 29 million provides geographical and sectoral diversification, expanding its presence in North America and strengthening capabilities in medical, healthcare and industrial segments. The unit’s certifications and compliance credentials also position it well to tap selective opportunities in sectors aligned with US national security and infrastructure priorities.
“Cyient DLM’s operational performance should strengthen as order inflows pick up and margins improve. With legacy challenges behind, we see a clear path for sustained growth,” Antique said.
Antique Stock Broking said Cyient DLM is well-positioned to return to a strong growth trajectory as the company focuses on rebuilding its order book and expanding operating margins. The brokerage noted that management is working on diversifying across geographies and sectors to scale up its currently depleted order pipeline, while also aiming to lift operating margins from 9 per cent in FY25. With adequate infrastructure in place, Cyient DLM can double its revenues without significant capex, Antique said in its fresh note.
At the current valuation of around 21 times 1HFY28E EPS—about a 50 per cent discount to peers—Antique continued to maintain its ‘Buy’ rating on the stock with a target price of Rs 570, valuing it at 28x 1HFY28E EPS.
Green shoots are visible as order inflows gained momentum in Q1FY26, rising 141 per cent year-on-year, largely driven by domestic demand. Antique expects this momentum to sustain, with near-term growth supported by the Indian market and longer-term growth backed by marquee global clients such as Honeywell, Boeing and Thales.
Margins, which were weighed down by low-margin legacy orders from Bharat Electronics Ltd (BEL) in FY25, are expected to recover to double-digit levels from FY26 onwards. Antique projects revenue/EBITDA/PAT growth at a CAGR of 20 per cent/30 per cent/38 per cent over FY25–28, with operating margins of 10.7 per cent, 11.3 per cent and 11.6 per cent in FY26/27/28 respectively.
The order book, which declined from Rs 2,430 crore in FY23 to Rs 1,900 crore in FY25 due to delays in overseas defence and aerospace contracts, improved to Rs 2,130 crore in Q1FY26 on strong domestic inflows. Management expects this trend to continue.
On the acquisition front, Cyient DLM’s purchase of US-based EMS player Altek Electronics for USD 29 million provides geographical and sectoral diversification, expanding its presence in North America and strengthening capabilities in medical, healthcare and industrial segments. The unit’s certifications and compliance credentials also position it well to tap selective opportunities in sectors aligned with US national security and infrastructure priorities.
“Cyient DLM’s operational performance should strengthen as order inflows pick up and margins improve. With legacy challenges behind, we see a clear path for sustained growth,” Antique said.