The company is one of India’s largest CNC machine tool manufacturers, offering a diverse range of products including Turning Centres, Turn-Mill Centers, Vertical Machining Centers (VMC), Horizontal Machining Centers (HMC), 5 Axis Machining Centers, Multi-tasking Machining Centers, along with Industry 4.0 and Artificial Intelligence (AI) solutions.
Share Price Movement
Jyoti CNC Automation Ltd. was listed on BSE and NSE on January 16, 2024. The stock debuted at a premium of 12.4 percent, listing at Rs.372 per share on the BSE. It was listed on NSE at Rs.370 per share, reflecting an 11.78 percent premium over the issue price of Rs.331 apiece.
Since its listing, Jyoti CNC Automation Ltd. has delivered multi-bagger returns, surpassing 150 percent, with its stock currently trading at Rs.1,151.95 per share. For instance, an investment of Rs.1 lakh made at the time of listing would now be valued at over Rs.2.5 lakh.
Factors Driving Growth
Firstly, Jyoti CNC Automation Ltd. has established itself as a leading manufacturer of simultaneous 5-axis CNC machines in India, capturing a significant market share of around 10 percent. This strong positioning in a growing industry has attracted investor interest and confidence.
Secondly, Jyoti CNC Automation has demonstrated impressive financial performance, reporting a compound annual growth rate (CAGR) of 129 percent in profits over the past five years. This consistent growth showcases the company’s operational efficiency and ability to capitalize on market opportunities.
Additionally, the company has successfully reduced its debt levels, which enhances its financial stability and appeal to investors. The debt reduction, combined with a robust revenue growth of approximately 22 percent, indicates effective management and a strong business model.
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Recent Financial Growth
Reflecting these positive trends, Jyoti CNC Automation reported a market capitalization of Rs.26,008 crores and total consolidated revenue of Rs.450 crore for the quarter ending March 2024. This represents a 1 percent increase from Rs.446 crore in the same quarter the previous year and a 19 percent rise from Rs.378 crore in Q3 FY24.
Profit After Tax (PAT) also saw substantial growth, increasing by 45 percent year-over-year to Rs.100 crore in Q1 FY25, up from Rs.69 crore in the June 2024 quarter, and an impressive 108 percent increase from Rs.48 crore in Q4 FY24.
Capacity Enhancement
With a robust network in India, Jyoti CNC has installed over 1,30,000 machines across 60+ countries. The company has set a plan to achieve a production capacity of up to 6,000 machines per year by September 2024.
Jyoti CNC Automation Ltd. has designed and developed a portfolio of CNC machines in India with over 200+ variants across 44 product verticals and still expanding.
Future Growth Engines
Jyoti CNC Automation Ltd. is set to benefit from robust industry growth. The Indian EMS sector, buoyed by record iPhone exports and a 24 percent rise in overall electronics exports, is expected to drive demand for over 100,000 CNC machines.
The semiconductor industry is also expanding, with a 19.7 percent CAGR forecasted, bolstered by major investments.
Additionally, the global Aerospace and Defence market and the rapidly growing Electric Vehicle sector, with projected CAGRs of 8.2 percent and 17.8 percent respectively, further enhance Jyoti CNC’s growth prospects.
Established Clientele
In the Aerospace and Automobile sectors, Jyoti CNC has a distinguished client roster featuring HAL, ISRO, Boeing, Airbus, Audi, Rolls Royce, Volvo, and Tata Motors. The company also caters to other prominent clients, including ArcelorMittal, BOSCH, JSW, Havells, and Godrej.
Revenue Break-up
For the quarter ended March 31, 2024, Jyoti CNC Automation reported its revenues from operations across various end-user industries, excluding scrap and other operating income, as follows:
Aerospace and Defence contributed 41 percent, Auto & Auto Components accounted for 25 percent, and General Engineering made up 18 percent of the revenue. Dies & Moulds contributed 7 percent, EMS (Electronic Manufacturing Services) represented 3 percent, while other sectors added 6 percent.
Shareholder Composition
As per the shareholding pattern of June 2024, the Promoters hold a 62.55 percent stake in the company, Foreign Institutional Investors (FII) hold a 4.91 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 26 percent and 6.54 percent stake in Jyoti CNC Automation Ltd., respectively.
Written by – Siddesh S Raskar
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