Emkay Global Recommends 'Reduce' on Cyient Despite Kinetic Tech Acquisition

• Cyient Semiconductors to acquire majority stake (>65%) in Kinetic Technologies for USD 93 million.
• Kinetic Technologies specializes in power management, analog, and mixed-signal ICs.
• Acquisition aims to boost Cyient's presence in power ICs for Edge AI and high-performance computing, creating India's first ASIC-led custom power semiconductor company.
• Expected to be EBIT-accretive from FY27 and EPS-accretive from FY28, more than doubling Cyient Semicon's revenue.
• Emkay Global Financial maintains a 'REDUCE' rating on Cyient with a target price of Rs 1150, pending deal closure.

Why It Matters: Emkay Global advises 'Reduce' on Cyient, setting Rs 1150 target despite strategic Kinetic acquisition.