Cyient shares jump 7% after announcing subsidiary for semiconductor business
Semiconductors, crucial for defence, automotive, and telecommunications sectors, have emerged as significant factors in the geopolitical arena. Countries like the US, Japan, and China are heavily investing in building domestic capabilities in this critical technology.
Shares of jumped 7% to Rs 1,900 in Friday's intraday trade on BSE after the company announced the strategic of its with the establishment of a fully owned subsidiary."We are happy to announce this strategic initiative that enhances our capabilities in Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing. As the global semiconductor market is expected to hit a trillion dollars by 2030 and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry's growth to $100 billion by 2030, we are well positioned to capitalize on the vast opportunities for growth and influence in this evolving market," said Krishna Bodanapu, Vice Chairman and Managing Director of Cyient Limited.
Semiconductors, crucial for , , and sectors, have emerged as significant factors in the geopolitical arena. Countries like the US, , and are heavily investing in building domestic capabilities in this critical technology.
India in March approved three semiconductor plant proposals, aiming to enhance its semiconductor manufacturing capabilities. These projects involve an estimated investment of Rs 1.26 lakh crore and are anticipated to substantially boost India's electronics manufacturing sector.India made the first effort towards building a semiconductor ecosystem when it approved a Rs 76,000 incentive scheme in December 2021 to attract global players to set shop in the country.
The finer details of the scheme were notified in January 2022. The first major success was achieved nearly 18 months later when US-based Micron announced in June 2023 it would set up an OSAT unit at Sanand in Gujarat. Of the total $2.75 billion investment planned in the factory, Micron had said it would invest $825 million while the rest will come from a combination of central and state government incentives.
At 12:43 am, the stock was trading 3.5% higher at Rs 1,825 on the BSE. However, year-to-date, the stock has plunged 21%, although it has rallied 136% over the past two years.
According to Trendlyne data, the target price for the stock is Rs 2,161, indicating an upside potential of just 18% from the current market price. The consensus recommendation from 19 analysts for the stock is a 'Buy'.
In technical terms, the relative strength index (RSI) of the stock is currently at 37.8. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. The stock is trading higher than the 5-day, 10-day and 50-day simple moving averages (SMAs). However, it is trading lower than the 20-day, 30-day, 100-day, 150-day and 200-day SMAs.
(with Agencies inputs)
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Source: Stocks-Markets-Economic Times
