1. At a Glance
From bleeding red to minting crores — Jyoti CNC Automation Ltd has turned its fate around like a 5-axis milling head. It’s now one of India’s largest CNC machine manufacturers, catering to aerospace, defense, and auto sectors. But at a P/E of 71+, is this automation hero overclocking reality?
2. Introduction with Hook
Imagine you were the shy nerd in high school — bullied for your complexity, undervalued for your brains. Fast forward 10 years, you’re running a startup, making robots for the auto industry and raking in crores. That’s Jyoti CNC for you.
- ₹1,818 Cr revenue in FY25 — 95% jump in just 2 years
- ₹316 Cr net profit in FY25 — a turnaround from consistent losses till FY22
It listed in 2024, and boy, it listed loud.
3. Business Model (WTF Do They Even Do?)
Jyoti CNC manufactures advanced metal-cutting computer numerical control (CNC) machines, especially simultaneous 5-axis machining centres — used in precision-intensive sectors like:
- Aerospace
- Defense
- Automotive
- Industrial Equipment
It earns money via:
- Machine sales
- After-sales servicing
- Exports to Europe (especially Italy via Huron Graffenstaden S.A.S)
Its revenue split is:
- ~65% India
- ~35% exports
Not just machines — they make the machines that make the machines.
4. Financials Overview
P&L Snapshot (₹ Cr)
| FY | Revenue | EBITDA | EBITDA % | Net Profit |
|---|---|---|---|---|
| 2022 | 746 | 73 | 10% | -48 |
| 2023 | 929 | 77 | 8% | -5 |
| 2024 | 1,338 | 301 | 22% | 151 |
| 2025 | 1,818 | 491 | 27% | 316 |
That is a profit CAGR of 100%+ over 3 years. From factory smoke to champagne pop.
5. Valuation
Let’s cut the sheet metal and get to the core.
- CMP: ₹1,015
- EPS FY25: ₹13.9
- P/E: ~73x
- Fair Value (based on 35–45x FY26E EPS of ₹17–18):
→ ₹595 – ₹810
Verdict? At CMP, you’re paying for 2030. Proceed only if you believe Jyoti is the next Mazak or DMG Mori.
6. What’s Cooking – News, Triggers, Drama
- 20 acres land acquired in Karnataka — greenfield expansion incoming.
- Order Book visibility rising in defense and aerospace
- No dividend policy yet — they prefer capex over chillar
- Listing in Jan 2024 — IPO was ₹331, stock hit ₹1500 before correcting
Still no debt tantrums despite expansion. They’re focused.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 45 |
| Reserves | 1,641 |
| Borrowings | 497 |
| Fixed Assets | 485 |
| CWIP | 168 |
| Total Assets | 2,792 |
| Debt/Equity Ratio | ~0.3x |
Key Insight: Balance sheet got swole, but responsibly. Reserves up 30x in 4 years.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹42 Cr | ₹-32 Cr | ₹3 Cr | ₹14 Cr |
| FY24 | ₹-48 Cr | ₹-170 Cr | ₹505 Cr | ₹286 Cr |
| FY25 | ₹-105 Cr | ₹-329 Cr | ₹145 Cr | ₹-289 Cr |
They’re spending. Aggressively. Mostly on capex and machines. Not ideal short term, but bullish if they execute well.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 24% |
| ROE | 21% |
| Debtor Days | 98 |
| Inventory Days | 378 |
| CCC | 304 |
Red Flag: CCC of 304 days? It’s like they wait for a year to get paid, after paying upfront.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Op Profit | Net Profit | EPS |
|---|---|---|---|---|
| FY22 | 746 | 73 | -48 | -16.4 |
| FY23 | 929 | 77 | -5 | -1.6 |
| FY24 | 1,338 | 301 | 151 | 6.6 |
| FY25 | 1,818 | 491 | 316 | 13.9 |
Margin jump from 8% to 27%. CNC ka C stands for Compounding.
11. Peer Comparison
| Company | P/E | ROCE | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|
| Kaynes Tech | 137 | 14% | 2,721 | 293 |
| Honeywell Auto | 68 | 18% | 4,190 | 524 |
| Jyoti CNC Auto | 72 | 24% | 1,818 | 316 |
| Syrma SGS | 70 | 12% | 3,787 | 171 |
P/E way higher than average for its size. Justified? If growth sustains.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | % Stake |
|---|---|
| Promoter | 62.55% |
| FIIs | 7.20% |
| DIIs | 10.43% |
| Public | 19.84% |
FIIs slowly increasing stake every quarter. Smart money’s showing up.
13. EduInvesting Verdict™
Jyoti CNC isn’t just building machines — it’s rebuilding its credibility. After a choppy loss-making history, it now has:
- Solid EBITDA margins (27%)
- Great ROCE (24%)
- Controlled debt
But… P/E of 70+ with weak free cash flow and bloated CCC? That’s like putting a Lamborghini engine in a rickshaw. Sexy, but risky.
Smart Investor Angle: Watch execution + cash flow trends. FY26 will reveal if it’s a manufacturing mogul or just a momentum darling.
Metadata
– Written by EduInvesting Research Team | July 13, 2025
– Tags: CNC Machines, Capital Goods, Precision Engineering, Robotics, India Manufacturing
