Cyient Shares Tumble 19% After CEO Exit: Here’s What You Need To Know

Shares of Cyient Limited plummeted 18.58% on the BSE after the company announced the resignation of its CEO, Karthikeyan Natarajan. The company also reported disappointing Q3 results and lowered its guidance for FY25, adding to the investors' concerns.

Despite the downfall in stock prices on BSE, consolidated revenue for Cyient grew 3.3% QoQ and 4.2% YoY, with DET revenue growth of 2.4% QoQ (down 1.9% YoY).

Connectivity (up 5.7% CC QoQ) led the growth, owing to good execution and ramp-up in North America. Transportation increased 3.7 percent CC QoQ, driven by deal ramp-ups in aerospace and strong demand from current customers, while rail transportation remained steady.

Commenting on the situation, HDFC Institutional Equities said, "We cut our revenue estimate by 2% and EPS estimate by 5% to factor in slower growth and weak margins. We maintain our ADD rating with a target price of Rs 1,790, based on 22 times FY27E DET EPS (vs 23 times earlier) and adding Rs 163 per share for the Cyient DLM stake," HDFC Institutional Equities said.

In addition, JP Morgan downgraded Cyient to a "neutral" rating and lowered the target price to Rs 1,750, representing a 17.5% upside from current levels. The firm highlighted the abrupt CEO resignation and lack of guidance as important reasons for the downgrade, as well as the company's difficulty in attaining high single-digit growth and returning to 16% margins in FY26.