Cyient DLM shares crash 12% despite Q2 profit growth: 3 reasons, brokerages set targets; should you buy?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Cyient DLM shares plunged 12.24% on Friday, 16 October, despite reporting revenue growth and a record order book.
- ✓Investors reacted to margin pressure and mixed brokerage views on the company's valuation.
- ✓While the firm showed healthy business momentum, the stock fell as markets focused on rising costs and profit quality.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Cyient DLM share price plunged 12.24% on Friday, 16 October, even as the electronics manufacturing services company reported double-digit revenue growth, higher normalised profit and a record order book for the September quarter. The sell-off came amid concerns over margin pressure, continued growth investments and mixed brokerage views on the stock's valuation and earnings outlook.
The stock's sharp decline followed its Q2 FY27 results, with investors appearing to focus on the pressure on operating margins despite healthy business momentum. While Motilal Oswal remained bullish on the stock, PL Capital maintained a 'Reduce' rating, highlighting the differing views on its growth prospects and valuation.
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