Cyient shares crash 6% as stock turns ex-record date for Rs 720 crore share buyback. What’s ahead?

The engineering and technology services company had fixed June 17 (Wednesday) as the record date for its Rs 720 crore share buyback. Only those shareholders who own the company’s shares in their demat accounts as of today will be eligible to tender shares. This means that any investor taking fresh positions in the counter will likely get the shares credited tomorrow as per Sebi’s T+1 settlement rule, making them ineligible to participate in the buyback.

Cyient in April said it will buy back up to 64 lakh shares for Rs 1,125 per share. This marks Cyient’s first buyback since 2019. In an exchange filing released on Monday, Cyient announced that its shareholders have now approved the share buyback. The entitlement ratio and other details will be announced later.

Buyback of shares refers to a corporate action where a company repurchases its own shares from existing shareholders. Usually, the company purchases the shares at a higher price than current levels, encouraging investors to participate. Typically, a company decides to buy back its shares to increase share value, utilise surplus cash, prevent hostile takeovers or increase promoter holdings.

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Cyient shares have gained over 1% in one week but is down nearly 23% in 2026 so far. In the longer term, the shares of the company have fallen 36% in one year and 42% in three years, but recorded marginal gains in five years.The company currently has a market capitalisation of less than Rs 9,540 crore.

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Why does Emkay maintain a ‘Reduce’ call on Cyient shares?

Emkay maintained its ‘Reduce’ call on Cyient shares, while increasing its target price to Rs 900 apiece from Rs 850 apiece. The latest target price implies a downside potential of less than 1% from the stock’s previous closing price of Rs 907.65 apiece.
The brokerage said that the firm’s growth slowed in FY26 owing to macro headwinds, ET Now reported. ER&D spend continued to expand at a healthy mid-to-high single digit, it added.
While collections increased modestly, mainly led by an increase in the DET segment, the number of DLM inventory turnover days rose by 63 due to weak revenue, customer-specific programme requirements and global supply chain challenges. It added that the management aspires to deliver stronger and more profitable growth in FY27.
Also read: Sebi plans buyback via SEs again, easier MF borrowing rules

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