Shares of Cyient slumped 11.4 per cent to end at Rs 481.95 on Friday, one of the worst performers on the BSE SmallCap index, as brokerages cut target price on the stock by 14-20 per cent after weak June quarter results. On Thursday, the engineering design services provider said June quarter net profit dropped 48.8 per cent sequentially to Rs 90.5 crore. Although the management is optimistic about revenue growth going forward, brokerages remain skeptical. “Though management was optimistic about revenue growth returning from Q2, we remain skeptical about the same as the odds are against the company,” said Prabhudas Lilladher. “FY20 will be a complete washout year for Cyient.

Higher exposure to communication, E-U, top client challenges will still remain key areas of improvement,” the brokerage said. Prabhudas Lilladher has downgraded the stock to hold from accumulate and Anand Rathi downgraded Cyient to hold from buy. Morgan Stanley has cut EPS estimates by 5-7 per cent to reflect weaker growth.