Cyient DLM shares rally 8% on bagging upgrade from Kotak Institutional Equities 2025 03 28
Stock Surge: Cyient DLM’s shares surged over 8% on March 28, following an upgrade from Kotak Institutional Equities, which changed its rating from "Sell" to "Reduce." The rally was further supported by Motilal Oswal’s bulk purchase of 5.3 lakh shares, signaling institutional interest.
📉 Target Price Cut: Despite the rating upgrade, Kotak reduced the fair value target for Cyient DLM shares from ₹560 to ₹440, citing muted domestic revenue growth and delays in US order finalization.
🌍 Growth Opportunities & Risks:
Europe: Cyient benefits from European defense spending, with key clients like Thales, Safran, and BAE.
USA: While Honeywell Anthem and ABB orders provide optimism, Boeing-related weakness remains a concern.
India: BEL orders contributed significantly to past revenue, but lack of new tenders may lead to weak domestic demand in early FY26.
📊 Revenue Forecast: Kotak slashed FY26 revenue growth projection to 5% from 32%, reflecting weaker domestic market expectations.
⚖ Investor Takeaway:
Short-term bullishness due to institutional buying and improved valuation.
Long-term caution as order delays and weaker growth prospects could impact the stock.
#India #DLM