Cyient DLM stock initiated with Underweight rating by JPMorgan

Published 09/07/2025, 06:58
Cyient DLM stock initiated with Underweight rating by JPMorgan

Investing.com - JPMorgan initiated coverage on Cyient DLM Ltd (CYIENTDL:IN) with an Underweight rating and a price target of INR450.00 on Wednesday.

The research firm cited growth challenges for the company in FY26, pointing to a soft order book that has remained flat for the last three quarters, with the fourth quarter of 2025 down 12% year-over-year.

JPMorgan also highlighted the absence of revenues from Bharat Electronics (NSE:BAJE), as the renewal contract has not yet materialized, and noted concerns about the company’s higher exports mix, which represented 59% of revenues in FY25.

The stock has underperformed year-to-date, falling 33% compared to peers’ 16% decline and Nifty’s 6% gain, which JPMorgan believes already reflects the negative outlook.

While acknowledging Cyient DLM could be a structural play on Aerospace and Defense sectors that are in an upcycle, JPMorgan valued the stock at 25x June 2026 earnings, lower than peers Syrma and Kaynes, citing lower growth expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.