Cyient DLM is an integrated Electronic Manufacturing Services (EMS) and solutions provider with presence across the value chain. It is one of the few Indian companies with 20+ years of experience serving highly regulated industries like aerospace, defence, and medical technology. The company is one of the top suppliers to global OEMs.
Cyient DLM Ltd. offers design, development, and manufacturing solutions in building high-mix,low-to-medium volume, extremely complicated systems in B2P (Build To Print) and B2S (Build To Specification) modes. It has names like Honeywell International Inc., Thales Global Services S.A.S, ABB Inc, Bharat Electronics Limited, and Molbio Diagnostics Private Limited. in its marquee customer's list
Cyient DLM has three manufacturing units in India in Hyderabad and Bengaluru, engaged in manufacturing complex EMS components.
Cyient DLM Ltd. IPO Details
Cyient DLM Ltd. has filed with the SEBI to raise Rs.592 crore via the IPO route. The offer is a 100% fresh issue IPO. The issuer hasn’t yet announced details regarding the subscription opening date, lot size, and price band.
Cyient DLM Ltd. IPO Objective
The company intends to utilise the net proceeds from the fresh issues for the following purposes.
- To meet the incremental working capital requirements.
- Fund capital expenditure of the company
- Promote inorganic growth.
Should you invest in Cyient DLM Ltd.?
Here are the top reasons to consider before investing in Cyient DLM Ltd. IPO.
- The company is a global EMS company catering to wide industry clients across defence, aerospace, medical technology etc.
- According to a Frost and Sullivan report, the company recorded the highest margin among Indian EMS peers.
- India’s EMS sector registered the fastest growth among all countries at 32.3% CAGR. In 2022, the Indian EMS industry contributed 2.2% of the global market.
Competitive Peers
There are no listed companies in India engaged in the business line of the company.
Cyient DLM Ltd. Noteworthy highlights
- Cyient DLM is a part of the Indian EMS sector, which is the fastest growing globally expecting to contribute 7.0% of the global market in 2026.
- The company has a robust order book of Rs. 25,467.72 million as of September 30, 2022.
- The top 10 customers contributed 93% of the company’s revenue from operations in the period that ended on September 30, 2022.
Company Financials
| Particulars | Period ending on September 30, 2022 | Year ending on March 31, 2022 |
|---|---|---|
| Revenue from Operations | 3,402.70 | 7,205.33 |
| Profit After Tax (PAT) | 134.22 | 397.95 |
| EBITDA | 352.35 | 840.40 |
| EBITDA Margin | 10.36% | 11.66% |
| EPS (Basic) | ||
| ROE | 6.28% | 17.56% |
Know before investing
Strengths
3It’s an end-to-end integrated EMS service provider with robust capabilities to offer B2P and B2S services.
It is one of the few Indian EMS companies offering electronic solutions for safety and mission-critical applications.
The company benefits from experienced and robust management with extensive industry experience of promoters.
Risks
3The loss of any key customer can impact the company’s future profitability.
Dependency on external, third-party suppliers for raw materials can affect the company’s future operations and financial performance.
Timely completion of projects is essential for maintaining profitability.
