Cyient DLM shares rally 8% on bagging upgrade from Kotak Institutional Equities

On account of the stock's sharp price correction and improved valuations, Kotak hiked its rating to 'Reduce', from 'Sell', on

***** IT player Cyient DLM's shares soared over eight percent in trade on March 28, after domestic brokerage Kotak Instutitional Equities upgraded its rating on the stock. Further, Motilal Oswal picked up 5.3 lakh shares in the previous session, in a bulk ***** hiked its rating to 'Reduce', from 'Sell', earlier, on account of the stock's sharp price correction. However, on the flip side, the brokerage cut its fair value target on shares to Rs Rs 440, down from Rs 560 earlier. Cyient DLM is expected to be a potential beneficiary of a pickup in European defense ordering. However, a muted order backlog, delay in order finalization by US customers due to tariff uncertainty and lower revenue growth in the domestic market after completion of the BEL order will lead to a weak start to FY2026 for Cyient DLM, noted Kotak. At 3.05 pm, shares of Cyient DLM were trading at Rs 458.6 per share, higher by 2.8 percent on NSE. Cyient DLM’s 39 percent/45 percent of revenues in FY2024/9MFY25 came from domestic market, largely driven by the BEL order. "With the order reaching completion stage, we now expect domestic revenue to remain muted in the near term," said Kotak.