Cyient DLM stock gains over 13% after Q4 results; Should you buy, sell, or hold?

Shares of Cyient DLM rose over 13 per cent in the morning deals on Wednesday and touched the day's high at Rs 779.55 apiece. The buying in the stock came a day after the company reported its Q4FY24 numbers. 

At around 11:24 a.m., shares of Cyient DLM traded 5.94 per cent or Rs 40.8, higher at Rs 728.15 apiece. The market capitalisation of the company at around the same time stood at Rs 5,774.68 crore. 

The electronics and mechanical manufacturing company reported its fourth-quarter numbers on Tuesday after market hours. The Q4 results showed that the company's profit after tax (PAT) increased 77 per cent to Rs 23 crore against Rs 13 crore year-on-year (YoY).

The revenue of the company increased 30.7 per cent at Rs 362 crore in the quarter under review against Rs 277 crore a year ago. 

The earnings before interest, tax, depreciation, and amortisation (EBITDA)   recorded a profit of Rs 38 crore against Rs 32 crore a year ago, up 18.7 per cent.

However, its EBITDA margin declined to 10.5 per cent against 11.6 per cent a year ago.

Should you buy, sell or hold? 

InCred Equities is bullish on Cyient DLM from a long-term perspective. The brokerage has retained its 'add' stance and has given a target price of Rs 1,049 apiece. 

"Its exposure to the aerospace and defence sector, which is in a multi-year upcycle, will aid its order book growth," the report read. 

Motilal Oswal has given a 'buy' rating on the stock with a target price of Rs 840 apiece. 

"Going forward, we expect CYIENT DLM to sustain its growth momentum, supported by: 1) a strong order book coupled with healthy order inflows; 2) high customer stickiness; and 3) a strong promoter heritage," the report read.

Since its listing at Rs 401, Cyient DLM shares have gained over 82 per cent to date. 

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