JYOTICNC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Here’s a sharp dive into Jyoti CNC Automation Ltd. (JYOTICNC) — a precision engineering player riding India’s capital goods wave 🛠️📈

💼 Core Financials & Performance

ROE (21.2%) & ROCE (24.4%) — outstanding capital efficiency; strong operating leverage in play.

PAT Growth: ₹80.2 Cr → ₹109 Cr (+9.4%) — healthy quarter-on-quarter rise with consistent margin behavior.

Debt-to-Equity: 0.29 — slightly geared, but manageable given its capital-intensive sector.

EPS: ₹13.9 — reflects profit strength, justifying its premium valuation.

Dividend Yield: 0.00% — retains earnings for expansion; typical of growth-stage firms.

📊 Valuation Snapshot

Metric Value Commentary

P/E 72.7 ⚠️ Rich valuation vs. industry PE (37.2)

P/B ~13.9 Trading far above book value; sentiment-driven

PEG 0.69 ✅ Undervalued relative to earnings growth

🔍 Verdict: While P/E appears inflated, the PEG ratio implies potential undervaluation given expected growth acceleration — possibly due to export opportunities or scale-up plans.

🧠 Business Model & Strategic Moat

Leader in CNC machining solutions, catering to automotive, aerospace, and heavy industries.

Strategic exposure to manufacturing resurgence and import substitution themes in India.

Competitive edge lies in precision tech, cost-efficiency, and diversified client base.

Despite lower domestic demand volatility, global exposure brings potential forex tailwinds.

📉 Institutional Trends

FII Holding ↑ 0.26% — growing confidence from foreign investors.

DII Holding ↓ 0.10% — mild reduction, possibly profit-taking.

📉 Technical Indicators & Entry Guidance

Current Price: ₹1,032

Below DMA-50 ₹1,086 and DMA-200 ₹1,091 — mild bearish sentiment.

RSI: 43.5 — neutral zone; could dip into oversold if weakness continues.

MACD: -21.3 — downtrend yet to reverse.

🎯 Suggested Accumulation Zone: ₹990–₹1,020 🧱 Support: ₹940–₹970 🔼 Resistance: ₹1,120–₹1,145

📌 Note: Volume drying up may hint at consolidation phase — potential accumulation opportunity.

🕰️ Long-Term Holding Strategy

Strong fundamentals, premium valuation, and robust return ratios position Jyoti CNC as a prime pick for high-conviction portfolios.

Best suited for investors with a 3–5 year horizon betting on India’s industrial renaissance.

Monitor for consistent export wins, order book growth, and margin discipline.

Want to benchmark it against Lakshmi Machine Works, Bharat Forge, or even Titagarh Rail for a thematic comparison across industrials? Let’s map that out and find under-the-radar gems 🔍✨.

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