Cyient DLM continues its upward surge; jumps 25% since listing!

Cyient DLM, established in June 1993, is a trusted partner and supplier of electronic and mechanical manufacturing systems to major players across various industries. They offer Design Led Manufacturing (DLM) solutions, taking responsibility for design, manufacturing, testing, and certification support. Their focus is on ensuring that customers’ products meet rigorous standards in terms of reliability, safety and performance. 

The company specialises in developing Low volume, high-mix (LVHM) products, a type of contract manufacturing setup that prioritizes quality and customization based on customer requirements. Cyient DLM typically enters into 3–5-year master service agreements (MSAs) with its clients. 

On July 10, 2023, Cyient DLM made its debut on BSE and NSE and got listed at a substantial premium of more than 50% at Rs 403 on NSE and Rs 401 on BSE. The company had a fixed price band issue at Rs 250 – Rs 265 with a lot size of 56 shares. Additionally, JM Financials and Axis Capital were the issue’s lead managers, and IPO registrar Kfin Technologies was responsible for the issue. Moreover, the current valuation of the company is Rs 3,871 crore. 

Furthermore, the company has reported its FY23 results in which sales of the company surged by 15.39% to Rs 832 crore while the operating profit of the company grew by 4.76% to Rs 88 crore. However, the net profit of the company decreased by 20% to Rs 32 crore in FY23 as compared to FY22. 

Furthermore, the company has been able to grow its sales by 22% (CAGR) for the past 3 years and profit has grown by 89% (CAGR) over the same period. 

On Tuesday, shares of the company surged by more than 19.11% and reached its upper circuit of Rs 504.90. Moreover, the company has a ROCE of 15.6% and a ROE of 23.4%. 

Investors should keep a close eye on this recently listed stock. 

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.