Hyderabad, May 14, 2025 –
In a strong show of confidence, leading brokerage firm Anand Rathi has forecasted that Cyient Ltd., a well-known engineering and technology company based in India, could see its share price rise by up to 27% in the next six months. This prediction comes despite recent setbacks that caused investor concern. Analysts are basing their optimism on bullish technical chart patterns, stable fundamentals, and signs of sectoral recovery, especially in areas such as aerospace and connectivity.
Earlier this year, in January 2025, Cyient shares experienced a sharp fall of over 20%, reaching a 52-week low of ₹1,402.25. This dip followed the announcement of a 32% drop in quarterly profits and the resignation of CEO Karthikeyan Natarajan. Additionally, the company revised its FY25 revenue guidance, indicating a likely 2.7% contraction. This negative news triggered concerns among investors, leading to a decline in stock value and market confidence.
However, recent technical analysis suggests that Cyient’s stock is showing signs of a comeback. Experts point out that the stock has broken out of a symmetrical triangle pattern on the weekly charts. This pattern is often seen as a sign of upcoming bullish momentum. The breakout is supported by higher-than-average trading volumes, suggesting renewed interest from investors. Other indicators like the Relative Strength Index (RSI) and MACD (Moving Average Convergence Divergence) also point toward a positive trend. The RSI has moved from oversold territory to a more neutral zone, while the MACD is showing bullish crossovers. Together, these signals indicate that Cyient could be on the verge of an uptrend.
Analysts also observe that the support level for Cyient is holding near ₹1,200, while resistance levels are seen around ₹1,240.98, ₹1,257.82, and ₹1,275.63. If the stock manages to break through these resistance levels, it could move upward significantly and possibly reach previous highs around ₹1,900 in the near term.
What’s adding more confidence to this outlook is the recent report from Anand Rathi, which recommends a strong ‘Buy’ rating on the stock. According to the brokerage, Cyient has the potential to reach a target price of ₹2,230, which reflects a possible 25% upside from its current price of around ₹1,785. The report credits this positive expectation to a 2% revenue growth in the last quarter, despite overall market slowdown. It also notes that the management is confident about stronger performance in the second half of FY25, particularly in growth areas like Aerospace, Connectivity, and New Technologies. Furthermore, the management is aiming to achieve an EBIT margin of 16% by the end of FY25, which could lead to improved profitability.
The positive forecast by Anand Rathi is not the only one. Other major brokerages have also expressed optimistic views. Motilal Oswal has maintained a ‘Buy’ rating with a target price of ₹2,250, citing Cyient’s attractive valuation compared to its historical average. Kotak Institutional Equities has also kept a ‘Buy’ recommendation, adjusting its target to ₹2,050, acknowledging medium-term growth opportunities. On the other hand, Nuvama Institutional Equities has taken a more cautious approach with a ‘Hold’ rating and a revised target of ₹1,660, though it still reflects a neutral-to-positive stance on the stock.
Several key factors support the idea that Cyient is on the path to recovery and growth. First, the company has a strong order book, particularly in industries like aerospace, transportation, and semiconductors. Global companies are increasingly turning to Indian firms like Cyient for cost-efficient engineering and digital solutions, which strengthens its future pipeline. Second, Cyient’s focus on digital transformation, such as AI-driven product design, 5G network planning, and smart manufacturing, makes it well-positioned to benefit from new-age demand. The company’s commitment to high-value services is seen as a major advantage as global demand shifts toward intelligent and sustainable technologies.
Another positive sign is the company’s ongoing efforts in leadership transition. After the CEO’s resignation earlier this year, Cyient has moved quickly to stabilize its leadership team with experienced interim executives. Industry insiders expect the company to appoint a new CEO with deep domain experience soon, which should help guide strategic decisions and restore full investor confidence.
Valuation also plays a role in making Cyient attractive to investors. At present, the company’s stock is trading at a lower price-to-earnings (P/E) ratio compared to its five-year average. This means investors can buy into the company at a discount, which is especially appealing in the current mid-cap investment environment. Analysts believe that such favorable valuations, combined with strong technical and fundamental indicators, make Cyient a compelling choice for both short-term and long-term investors.
From a broader perspective, the global engineering services industry is projected to grow at over 10% CAGR in the coming years. As businesses worldwide continue to outsource product development, especially in areas like defense, electronics, and telecom, companies like Cyient are well placed to capture a larger share of the market. This sectoral growth is another reason why experts believe Cyient could deliver strong returns in the near future.
However, investors should also be aware of the risks. The biggest concern remains the uncertainty around top-level leadership. If the process of appointing a new CEO takes too long, it may affect strategic momentum. Additionally, any further dip in quarterly results or failure to meet revised financial goals could damage investor sentiment. External risks such as market volatility, geopolitical developments, or macroeconomic downturns may also impact stock performance, even if the company’s internal metrics remain strong.In conclusion, despite the challenges faced in the past few months, Cyient appears to be on a path to recovery and growth. Analysts from Anand Rathi and other top brokerage firms are showing confidence in the stock based on technical chart patterns, valuation metrics, and sectoral trends. With a possible upside of 27% within six months, Cyient shares are once again gaining attention among investors looking for value picks with growth potential. As always, investors should stay updated with quarterly results, management updates, and market trends to make informed decisions.
