![]() The company has tweaked the organisational structure to align sales efforts and accelerate services growth. Aerospace remained stable while transportation and utilities continue to drag growth, but improvement in the two is likely in H2. Investments in new areas (EV and mobility) will help the company align its growth with the industry. The services growth was driven by communications and new growth areas like automotive and mobility. Cyient: Cyient reported a decent quarter revenue was up 4.4% QoQ CC (better than the estimate), led by core services (+6.5% QoQ CC, +2.5% organic). ![]() ![]() Given the healthy retail participation and attractive valuation, we maintain our positive stance on ISEC however, we trim our target multiple to 17.5x (from 20x) as we roll forward our earnings to Mar-24E (from Sep-23E) and maintain ADD with a revised target price of INR675. We cut our FY23/24E APAT estimates by 4/8% to build in weak cash volumes, pressure on broking yields, and drag from staff costs in the medium term. We draw comfort from ISEC's renewed focus on building digital capabilities however, given the high dependence on cash delivery volumes and tech-based handicap, we believe that its revenues will remain cyclical and face headwinds from the new-age FinTech brokers. ICICI Securities: ISEC printed de-growth (-19% QoQ) in pure broking revenue on a weak base (Q4: -5% QoQ), as cash volumes plunged 20% sequentially (illustrating the dependence on cash volumes).
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