During Thursday’s trading session, the shares of one of the leading manufacturers of metal cutting computer numerical control (CNC) machines in India, with a 10 percent market share in India surged nearly 4 percent to Rs. 1,216.35 on BSE.
Stock Performance:
With a market cap of Rs. 27,306.7 crores, at 10:51 a.m., the shares of Jyoti CNC Automation Limited were trading in the green at Rs. 1,200.7, up by nearly 2.6 percent, as against its previous closing price of Rs. 1,170.7. Jyoti CNC Automation was listed on the stock exchanges on 16th January 2024 and has since delivered around 177.3 percent of multibagger returns.
Order Book in Q2 FY25:
In Q2 FY25, the company’s consolidated order book reached Rs. 4,289.3 crores, representing a growth of 26 percent QoQ from Rs. 3,403.7 crores in Q1 FY25.
The Aerospace segment made the largest contribution, accounting for 43% of the total order book, followed by 17% from the EMS segment, 16% from the General Engineering segment, 15% from the Auto & Auto Components segment, 4% from the Dies & Mould segment, and 5% from other segments.
In terms of order intake (end-user industry segment) for Q2 FY25, the company received Rs. 1,282.6 crores in orders.
The EMS segment contributed the highest share at 41%, followed by 22% from the Aerospace segment, 17% from General Engineering, 15% from Auto & Auto Components, 1% from Dies & Mould, and 4% from other segments.
Future Outlook:
Jyoti CNC Automation is constructing the additional machine building capacity through the expansion of assembly and sub-assembly, with a capacity enhancement of 6,000 machines p.a. already completed.
The company further plans to increase its installed manufacturing capacity by an additional 10,000 machines p.a. at its manufacturing facilities in Lodhika GIDC, Metoda, Rajkot. This expansion is expected to be completed within the next two fiscal years.
For this capacity addition, the company plans to invest an estimated Rs. 400 crores, which will be raised through a combination of internal and external sources, in the next two fiscal years.
In 2025, Jyoti CNC Automation has already entered the segments of EMS, Aerospace, Automobile & General Engineering. By 2026, the company aims to expand further by planning to enter into the semiconductor segment.
The company is also targeting under-penetrated markets such as the USA and South Asia (including Thailand, Vietnam, and Indonesia) to expand its reach.
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Financials:
Jyoti CNC Automation reported a significant growth in the revenue from operations, experiencing a year-on-year increase of nearly 43 percent, rising from Rs. 302 crores in Q2 FY24 to Rs. 430.7 crores in Q2 FY25. Similarly, the company’s net profit increased by 347 percent YoY from Rs. 17 crores to Rs. 76 crores, over the same period.
Key Financial Ratios:
In terms of key financial metrics, Jyoti CNC Automation currently has a Return on Equity (RoE) of 20.8 percent and a return on capital employed (RoCE) of 21.2 percent. Additionally, the stock has a P/E ratio of 96.8, compared to the industry’s P/E ratio of 42.9, while the company’s debt-to-equity ratio stands at 0.17.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 62.55 percent stake in the company, Foreign Institutional Investors (FII) hold a 5.81 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 20.65 percent and 10.99 percent stake in Jyoti CNC Automation, respectively.
About the company:
Incorporated in 1991 as AMB Engineering Company Private Limited, Jyoti CNC Automation Limited is engaged in only one business of manufacturing and selling metal cutting computer numerical control (CNC) machines.
The company has a diversified product basket which includes entry-level CNC Metal cutting machines to high-end 5-axis and multi-axis CNC Metal cutting machines.
In 2016, Jyoti CNC Automation entered into an MOU with a research institution constituted by the Govt. of India for the development of 5 Axis CNC Multi-Tasking Machine.
Written by Shivani Singh
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