Jyoti CNC Automation
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Jyoti CNC Automation Limited is positioned for notable growth, driven by a strategic expansion plan to increase production capacity by 10,000 machines annually by September 2026, alongside a robust order book of INR 4,732 crore. Management's focus on R&D and product innovation, particularly in high-performance machining centers, aligns with industry trends and is expected to enhance revenue growth. However, challenges such as the investigation into revenue reversal at the Huron subsidiary and the impact of operating de-leverage on profitability necessitate vigilant cost management. Vista's financial outlook reflects expectations of accelerating revenue growth beyond historical levels, with stable margins supported by a conservatively financed balance sheet. The industrial machinery sector's favorable macro conditions, including improving manufacturing activity and strong auto sales, further bolster Jyoti's growth prospects. Over the next 12-24 months, key opportunities include expanding market share in aerospace and defense, while watchpoints include the resolution of the Huron investigation and managing operational costs effectively
Why We Like This Stock
- Strategic expansion to increase production capacity by 10,000 machines annually by September 2026
- Robust order book of INR 4,732 crore indicates strong demand across key sectors
- Focus on R&D and product innovation aligns with global industry trends, supporting future revenue growth
Things To Watch Out For
- Ongoing investigation into revenue reversal at the Huron subsidiary could impact financial reporting and investor confidence
- Profitability affected by operating de-leverage due to lower revenue and higher costs
- Need for improved cost management to maintain stable margins amidst rising operational expenses
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,338 | 1,818 | 2,093 | 2,229 | 2,773 |
| Profit Before Tax (Cr.) | 185 | 427 | 467 | 403 | 539 |
| PBT Margin | 13.8% | 23.5% | 2231.2% | 18.1% | 19.4% |
| Net Profit (Cr.) | 151 | 321 | 344 | 297 | 397 |
| Earnings Per Share | 6.6 | 14.1 | 15.1 | 13.1 | 17.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BPWealth | ▲ Buy | 888 | 26-Jun-2026 |
Company Overview
Show Company Profile
Jyoti CNC Automation Limited manufactures and sells metal cutting computer numerical control (CNC) machines in India, rest of Asia, Europe, the Middle East, North America, South America, and Africa. Its product portfolio includes CNC turning centers, CNC turn mill centers, CNC vertical machining centers, CNC horizontal machining centers, CNC 5 axis machining centers, and CNC multi-tasking machines. The company also provides 7th Sense, an intelligent digital suite for real-time monitoring of machine health, tool life, and productivity; and PreciProtect, an artificial intelligence-driven system for preventing machine collisions. It serves aerospace, agriculture, automobile, diamond and jewellery, die and mould, electronics manufacturing services, general engineering, tele-communication, infrastructure, medical, oil and gas, power, pumps and valves, and railway industries. The company was incorporated in 1989 and is based in Rajkot, India.