Cyient shares rally 4% after company appoints new CEO for DET Business

Shares of Cyient surged 4% to an intraday high of Rs 1,535.55 on the BSE on Thursday after the engineering solutions company appointed Sukamal Banerjee as executive director and chief executive officer of its digital, engineering, and technology (DET) business for a five-year term starting February 19. He will also join the board of directors of Cyient Ltd.

The appointment follows the resignation of Karthikeyan Natarajan as Cyient’s CEO and executive director last month. Natarajan stepped down after the Hyderabad-headquartered company reported a 28.3% year-on-year decline in its net profit for the third quarter ended December 2024, which fell to Rs 124 crore.

Banerjee previously served as CEO of Chrys Capital-backed digital engineering firm Xoriant. His departure from Xoriant was followed by the company naming Rohit Kedia, former chief growth officer of LTIMindtree, as its new CEO on Tuesday. Before Xoriant, Banerjee spent nearly 27 years at HCLTech, where he rose to the position of corporate vice president.

Cyient chairman MM Murugappan said Banerjee’s extensive experience in the engineering research & development (ER&D) and technology sectors would help the company strengthen its organisation and drive the next phase of accelerated growth.

Banerjee’s appointment is subject to shareholder and central government approval, as required, Cyient said in a regulatory filing.

Krishna Bodanapu, Cyient’s executive vice-chairman and managing director, said Banerjee’s leadership in the ER&D and technology services sector would benefit the company as it focuses on strengthening its core engineering offerings and developing technology-led intelligent solutions.Shares of Cyient closed 0.4% higher on Wednesday at Rs 1,474.80 on the BSE. The stock has declined 28.72% over the past year, 18.92% in the past six months, and 15.88% in the past month. However, it has gained 3.04% in the last week.According to data from Trendlyne, the average consensus target price for Cyient shares is Rs 1,800, implying a potential upside of 22%. Out of the 22 analysts covering the stock, 10 have a “buy” rating, five suggest a “hold,” and seven recommend “sell.”

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