Cyient DLM IPO Review – Date, GMP, Price, Financials & More

Cyient DLM IPO Review: Cyient DLM Limited is coming up with its Initial Public Offering. The IPO will open for subscription on June 27, 2023, and close on June 30, 2023. In this article, we will look at the Cyient DLM IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out! Cyient DLM IPO Review – About The Company Incorporated on June 30, 1993, Cyient DLM Limited is an integrated Electronic Manufacturing Services (EMS) and solutions provider that focuses on a product’s whole life cycle, including design, manufacture, and maintenance. The company has three manufacturing facilities located in Mysuru, Hyderabad and Bengaluru with a total manufacturing area of 229,061 sq. ft. It has a diverse Board of Directors with an average of more than seven years of expertise in the EMS business, which is reinforced by its experienced management team with an average of more than 20 years of industry experience. Over the years, the company has built long-term relationships as an integrated partner to multiple marquee customers such as Honeywell International Inc, Thales Global Services S.A.S , ABB Inc, Molbio Diagnostics Private Limited and Bharat Electronics Limited having had an average relationship of over 11 years as on March 31, 2023. In the period their order book stood at Rs 2,432.54 Crores. Cyient DLM IPO – About The Industry The EMS market is experiencing significant tailwinds. The Indian EMS sector accounted to 2.2% (USD 20 billion) of the global EMS market in 2022. India’s EMS sector is developing at the fastest rate of any country, with a CAGR of 32.3%, and is estimated to contribute 7.0% (USD 80 billion) of the worldwide EMS market by 2026. Opportunities from Select Industries for Cyient DLM’s EMS business in India As Cyient DLM Limited caters to the needs of different industries, the company’s growth is dependent on the growth of the industries it caters to. Let us now look at the growth prospects of these industries Aerospace & Defence Industries: A&D is one of the most complex and specialised areas in the EMS industry. This sector is in constant need of development, and it is expected to witness significant growth in India. This is evident from the annual defence budget, which has increased from INR 4.78 lakh crore for FY22 to INR 5.25 lakh crore for FY23. The Indian EMS market for A&D Electronics is valued at INR 37 billion in FY22 and is predicted to expand at a 38% CAGR to INR 186 billion by FY27. The A&D Electronics segment represents 2.5% of the Indian EMS market. Medical Industry: With the increasing demand for healthcare and medical devices from a rise in medical tourism and the need for high-speed analysis, the medical industry is another industry important for the growth of Cyient DLM Ltd. This industry’s growth is also backed by the government. The EMS market for the Medical industry is valued at INR 23 billion in FY22 and is estimated to grow at a CAGR of 40% by FY27 which will be valued at INR 125 billion Apart from the two industries, the Industrial, telecom and automotive sectors also important for the business of Cyient DLM Ltd. The EMS market for the Industrial sector is valued at INR 58 billion in FY22 and is estimated to grow at a CAGR of 21.7% by FY27 which will be valued at INR 125 billion. The EMS market for the Telecom sector is valued at INR 57 billion in FY22 and is estimated to grow at a CAGR of 20.5% by FY27 which will be valued at INR 145 billion. Products by the company: The company offers its services to Aerospace & Defence, Medical, Energy & Industrial and Rail Transport industries. Following are the services provided by the company: (Source: RHP of the company) Cyient DLM IPO – Financial Highlights If we look at the financials of Cyient DLM Limited we notice that their assets have roughly doubled from Rs.645.03 crores in March 2021 to Rs. 1104.72 crores in March 2023. Similarly, its revenue has also increased from Rs. 636.91 crores in March 2021 to Rs.838.34 crores in March 2023. The net profit of the company has also increased from Rs. 11.81 Crores in March 2021 to Rs. 31.73 Crores with a net profit margin currently standing at 3.7%. Another good aspect about the company is that it has significantly increased its reserves every year with the reserves standing at Rs. 145.01 Crores as of March 2023. Good reserves in the company indicate financial stability in the company and its ability to withstand unexpected expenses. Though it’s not a major concern, the company’s total borrowings have also increased from Rs, 233.77 Crores to Rs 314.47 Crores. The balance sheet of the company (Source: RHP of the company) The Income Statement of the company (Source: RHP of the company) Product-wise contribution to revenue from operations for the year ended 2023: (Source: RHP of the company) Summary of Financial Information (Source: RHP of the company) Key Players in the Market Below is a table of the key players in the EMS industry along with their total market share as of FY22: Key Players Market Share Cyient DLM Ltd 0.5% SFO Technologies PVT. Ltd 1.1% Centum Electronics Ltd 0.5% Syrma SGS Technology Ltd 0.7% Avalon Technologies Ltd 0.6% Kaynes Technology India Ltd 0.5% VVDN Technologies Pvt. Ltd 0.8% DCX Systems Ltd 0.8% Strengths of the Company The company provides completely integrated engineering solutions to both B2P and B2S. This makes it well-positioned to deliver services to customers across the entire product lifecycle. The company is one of the few in the country to offer electronics solutions for safety and mission-critical applications. Since the industry is highly regulated, it is difficult for new players to enter the market. With over 22 years of experience, the company has built a diverse customer base with marquee clients which has enabled its accelerated growth and has made it an industry leader in the EMS sector. The company has widespread manufacturing facilities across three cities, stringent quality systems and processes and a robust supply chain, enabling it to provide high-quality end-to-end integrated solutions to its customers The company has a competitive advantage in the industry as its promoter, Cyient ltd was named in the ‘Leadership zone’ across aerospace, telecommunication, semiconductors, industrial, and medical devices verticals. Weaknesses of the Company A revenue of 91.08% of the company’s total revenue is contributed by its top 10 customers. The loss of any key customers can impact the company’s revenue significantly The company is dependent on its promoter, management and its key personnel to run its business. Any loss of the key team members can impact the performance of the business. The market share of the EMS sector in Inda was merely 0.05% in FY22. Any inability to compete successfully in the highly competitive EMS market could be detrimental to the company’s operations. The cost of materials contributed to 79.75% of the total expenses of the company for FY23. Failure to effectively manage the inventory cost can adversely affect the financial conditions of the company. The company derives the majority of its operating revenues from its facility in Mysore. Any disruption in this particular facility can adversely affect the revenues of the company. Cyient DLM IPO Review – Key IPO Information Particulars Details IPO Size ₹592.00 Cr Fresh Issue ₹592.00 Cr Offer for Sale (OFS) – Opening date 27 June 2023 Closing date 30 June 2023 Face Value ₹10 per share Price Band — Lot Size Minimum Lot Size 1 Maximum Lot Size Listing Date 10 July 2023 Promoters: Cyient Limited Book Running Lead Manager: Axis Capital Limited and JM Financial Limited Registrar to the Offer: KFin Technologies Limited The Objective of the Issue The company intends to utilise the net proceeds of the IPO towards the following purposes: Funding the company’s working capital requirements. Funding the company’s capital expenditure Partial or Full repayment/prepayment of certain borrowing of the company Acquisitions as a means of achieving inorganic growth General corporate purposes. Cyient DLM IPO – GMP Since GMP is currently not available, we shall update the article once we recieve the information In Closing In this article, we looked at the details of Cyient DLM IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post. Are you applying for the IPO? Let us know in the comments below. Written by Aaron Vas By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Cyient DLM IPO Review – Date, GMP, Price, Financials & More appeared first on Trade Brains. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Click here to reserve your seat now!]( [Cyient DLM IPO Review – Date, GMP, Price, Financials & More](?site= Cyient DLM IPO Review: Cyient DLM Limited is coming up with its Initial Public Offering. The IPO will open for subscription on June 27, 2023, and close on June 30, 2023. In this article, we will look at the Cyient DLM IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out! Cyient DLM IPO Review – About The Company Incorporated on June 30, 1993, Cyient DLM Limited is an integrated Electronic Manufacturing Services (EMS) and solutions provider that focuses on a product’s whole life cycle, including design, manufacture, and maintenance. The company has three manufacturing facilities located in Mysuru, Hyderabad and Bengaluru with a total manufacturing area of 229,061 sq. ft. It has a diverse Board of Directors with an average of more than seven years of expertise in the EMS business, which is reinforced by its experienced management team with an average of more than 20 years of industry experience. Over the years, the company has built long-term relationships as an integrated partner to multiple marquee customers such as Honeywell International Inc, Thales Global Services S.A.S , ABB Inc, Molbio Diagnostics Private Limited and Bharat Electronics Limited having had an average relationship of over 11 years as on March 31, 2023. In the period their order book stood at Rs 2,432.54 Crores. Cyient DLM IPO – About The Industry The EMS market is experiencing significant tailwinds. The Indian EMS sector accounted to 2.2% (USD 20 billion) of the global EMS market in 2022. India’s EMS sector is developing at the fastest rate of any country, with a CAGR of 32.3%, and is estimated to contribute 7.0% (USD 80 billion) of the worldwide EMS market by 2026. Opportunities from Select Industries for Cyient DLM’s EMS business in India As Cyient DLM Limited caters to the needs of different industries, the company’s growth is dependent on the growth of the industries it caters to. Let us now look at the growth prospects of these industries Aerospace & Defence Industries: A&D is one of the most complex and specialised areas in the EMS industry. This sector is in constant need of development, and it is expected to witness significant growth in India. This is evident from the annual defence budget, which has increased from INR 4.78 lakh crore for FY22 to INR 5.25 lakh crore for FY23. The Indian EMS market for A&D Electronics is valued at INR 37 billion in FY22 and is predicted to expand at a 38% CAGR to INR 186 billion by FY27. The A&D Electronics segment represents 2.5% of the Indian EMS market. Medical Industry: With the increasing demand for healthcare and medical devices from a rise in medical tourism and the need for high-speed analysis, the medical industry is another industry important for the growth of Cyient DLM Ltd. This industry’s growth is also backed by the government. The EMS market for the Medical industry is valued at INR 23 billion in FY22 and is estimated to grow at a CAGR of 40% by FY27 which will be valued at INR 125 billion Apart from the two industries, the Industrial, telecom and automotive sectors also important for the business of Cyient DLM Ltd. The EMS market for the Industrial sector is valued at INR 58 billion in FY22 and is estimated to grow at a CAGR of 21.7% by FY27 which will be valued at INR 125 billion. The EMS market for the Telecom sector is valued at INR 57 billion in FY22 and is estimated to grow at a CAGR of 20.5% by FY27 which will be valued at INR 145 billion. Products by the company: The company offers its services to Aerospace & Defence, Medical, Energy & Industrial and Rail Transport industries. Following are the services provided by the company: (Source: RHP of the company) Cyient DLM IPO – Financial Highlights If we look at the financials of Cyient DLM Limited we notice that their assets have roughly doubled from Rs.645.03 crores in March 2021 to Rs. 1104.72 crores in March 2023. Similarly, its revenue has also increased from Rs. 636.91 crores in March 2021 to Rs.838.34 crores in March 2023. The net profit of the company has also increased from Rs. 11.81 Crores in March 2021 to Rs. 31.73 Crores with a net profit margin currently standing at 3.7%. Another good aspect about the company is that it has significantly increased its reserves every year with the reserves standing at Rs. 145.01 Crores as of March 2023. Good reserves in the company indicate financial stability in the company and its ability to withstand unexpected expenses. Though it’s not a major concern, the company’s total borrowings have also increased from Rs, 233.77 Crores to Rs 314.47 Crores. The balance sheet of the company (Source: RHP of the company) The Income Statement of the company (Source: RHP of the company) Product-wise contribution to revenue from operations for the year ended 2023: (Source: RHP of the company) Summary of Financial Information (Source: RHP of the company) Key Players in the Market Below is a table of the key players in the EMS industry along with their total market share as of FY22: Key Players Market Share Cyient DLM Ltd 0.5% SFO Technologies PVT. Ltd 1.1% Centum Electronics Ltd 0.5% Syrma SGS Technology Ltd 0.7% Avalon Technologies Ltd 0.6% Kaynes Technology India Ltd 0.5% VVDN Technologies Pvt. Ltd 0.8% DCX Systems Ltd 0.8% Strengths of the Company The company provides completely integrated engineering solutions to both B2P and B2S. This makes it well-positioned to deliver services to customers across the entire product lifecycle. The company is one of the few in the country to offer electronics solutions for safety and mission-critical applications. Since the industry is highly regulated, it is difficult for new players to enter the market. With over 22 years of experience, the company has built a diverse customer base with marquee clients which has enabled its accelerated growth and has made it an industry leader in the EMS sector. The company has widespread manufacturing facilities across three cities, stringent quality systems and processes and a robust supply chain, enabling it to provide high-quality end-to-end integrated solutions to its customers The company has a competitive advantage in the industry as its promoter, Cyient ltd was named in the ‘Leadership zone’ across aerospace, telecommunication, semiconductors, industrial, and medical devices verticals. Weaknesses of the Company A revenue of 91.08% of the company’s total revenue is contributed by its top 10 customers. The loss of any key customers can impact the company’s revenue significantly The company is dependent on its promoter, management and its key personnel to run its business. Any loss of the key team members can impact the performance of the business. The market share of the EMS sector in Inda was merely 0.05% in FY22. Any inability to compete successfully in the highly competitive EMS market could be detrimental to the company’s operations. The cost of materials contributed to 79.75% of the total expenses of the company for FY23. Failure to effectively manage the inventory cost can adversely affect the financial conditions of the company. The company derives the majority of its operating revenues from its facility in Mysore. Any disruption in this particular facility can adversely affect the revenues of the company. Cyient DLM IPO Review – Key IPO Information Particulars Details IPO Size ₹592.00 Cr Fresh Issue ₹592.00 Cr Offer for Sale (OFS) – Opening date 27 June 2023 Closing date 30 June 2023 Face Value ₹10 per share Price Band — Lot Size Minimum Lot Size 1 Maximum Lot Size Listing Date 10 July 2023 Promoters: Cyient Limited Book Running Lead Manager: Axis Capital Limited and JM Financial Limited Registrar to the Offer: KFin Technologies Limited The Objective of the Issue The company intends to utilise the net proceeds of the IPO towards the following purposes: Funding the company’s working capital requirements. Funding the company’s capital expenditure Partial or Full repayment/prepayment of certain borrowing of the company Acquisitions as a means of achieving inorganic growth General corporate purposes. Cyient DLM IPO – GMP Since GMP is currently not available, we shall update the article once we recieve the information In Closing In this article, we looked at the details of Cyient DLM IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post. Are you applying for the IPO? Let us know in the comments below. Written by Aaron Vas By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Cyient DLM IPO Review – Date, GMP, Price, Financials & More appeared first on Trade Brains. 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