Jyoti CNC Automation Ltd – Rajkot’s CNC Picasso or Just Another Overpriced Lathe?
1. At a Glance
Jyoti CNC is the desi CNC kingpin, holding ~10% domestic market share, producing 200+ variants of machines that can drill, turn, and mill faster than a Surat jeweller counts cash. With exports at 45% and aerospace orders at 43%, the company looks more like Dassault’s sidekick than a Rajkot workshop. Market cap ₹21,100 Cr, P/E 63, book value ₹74… and the stock trades at ₹928. Basically, your lathe machine now costs the same as a week’s rent in South Bombay.
2. Introduction
CNC machines are the unsung heroes of modern industry. They carve metal with more precision than a Gujarati diamond cutter and more patience than your CA waiting for Form 26AS.
Jyoti CNC, founded in Rajkot, quietly grew from a machine-tool maker into one of India’s top CNC exporters. With Airbus, Tata, HAL, Audi, Bosch, and Minda on the client list, they’re basically running the backstage show for aerospace and auto giants.
But here’s the twist: While order books scream ₹4,289 Cr, working capital days ballooned from 112 to 203. So, is this a high-tech story or a classic “sales growing faster than cash flow” trap? As detectives, we’ll sniff every ratio.
Question: Would you trust a company with ₹71 Cr quarterly PAT to justify a ₹21,000 Cr valuation?
3. Business Model – WTF Do They Even Do?
Think of Jyoti CNC as a Swiss Army knife for manufacturing:
Machinery (93% of revenue): 44 product verticals, 200+ variants, from 3-axis budget models to flashy 5-axis machining centres.
Spare Parts & Services (7%): Tool changers, spindles, after-sales maintenance – the Netflix subscription model of machine tools.
Industry-wise mix is shifting dramatically: Aerospace is now 43% (up from 8% in FY22), while auto fell from 39% to 28%. Translation: Rajkot machines are now making Airbus parts instead of truck pistons.
Geography? Once 83% domestic (FY22), now 45% exports. Europe, Mexico, UAE, and even China buy Rajkot’s machines – irony noted.
4. Financials Overview
Metric
Latest Qtr (Q1 FY26)
YoY Qtr
Prev Qtr
YoY %
QoQ %
Revenue
₹410 Cr
₹362 Cr
₹576 Cr
+13.4%
-29%
EBITDA
₹100 Cr
₹85 Cr
₹178 Cr
+18%
-44%
PAT
₹71 Cr
₹51 Cr
₹109 Cr
+40%
-35%
EPS (₹)
3.14
2.24
4.79
+40%
-34%
Detective Note: Revenue fell QoQ like a botched machine calibration, but YoY still looks strong. Margins remain fat (24% OPM). Stock P/E 63 vs industry 37 = “priced like aerospace, not Rajkot.”
