Shares of Cyient were down around 8 percent as investors turned wary of the stock after December quarter results’ announcement.
The company’s profit has fallen 27 percent to Rs 92.3 crore, while revenue remain unchanged at Rs 1,187.7 crore quarter on quarter. The company, which was supposed to consider buyback, will do so at a later date.
Morgan Stanley is overweight on the stock with a target set at Rs 720.
The brokerage believes that earnings were a miss on revenue, but it was offset by a strong margin.
The company lowered full-year revenue guidance for services business.
Going forward, it expects robust growth in Q4 along with margin expansion QoQ.
At 09:18 hrs Cyient was quoting at Rs 588.90, down Rs 38.65, or 6.16 percent, on the BSE. It touched an intraday high of Rs 600.00 and an intraday low of Rs 577.30.