⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JYOTICNC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | JYOTICNC | Market Cap | 17,379 Cr. | Current Price | 764 ₹ | High / Low | 1,331 ₹ |
| Stock P/E | 46.0 | Book Value | 97.3 ₹ | Dividend Yield | 0.00 % | ROCE | 21.5 % |
| ROE | 16.6 % | Face Value | 2.00 ₹ | DMA 50 | 831 ₹ | DMA 200 | 929 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.49 % | PAT Qtr | 105 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 42.7 | MACD | -28.9 | Volume | 13,84,378 | Avg Vol 1Wk | 31,82,846 |
| Low price | 687 ₹ | High price | 1,331 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.18 |
| 52w Index | 12.0 % | Qtr Profit Var | 36.0 % | EPS | 16.6 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹78.9 Cr → ₹105 Cr), showing strong growth. EPS at ₹16.6 supports earnings strength.
- Margins: ROCE at 21.5% and ROE at 16.6% reflect solid efficiency, though not industry-leading.
- Debt: Debt-to-equity ratio of 0.18 indicates low leverage and financial stability.
- Cash Flow: Healthy earnings growth supports cash generation, though cyclicality may affect consistency.
💹 Valuation Indicators
- P/E: 46.0, significantly above industry average (28.0), suggesting premium valuation.
- P/B: 7.85 (₹764 / ₹97.3), reflecting high market expectations.
- PEG Ratio: 0.29, attractive as growth is undervalued relative to earnings.
- Intrinsic Value: Current price ₹764 is above fair value; better entry closer to ₹687–720.
🏢 Business Model & Competitive Advantage
- Strong presence in precision engineering and CNC machinery.
- High demand from industrial and manufacturing sectors supports growth.
- Low debt enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹687–720 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking growth exposure in industrial manufacturing, though volatility should be expected.
✅ Positive
- Strong sequential PAT growth (+36%).
- Low debt-to-equity ratio (0.18) ensures financial stability.
- PEG ratio of 0.29 indicates undervaluation relative to growth.
⚠️ Limitation
- High P/E (46.0) compared to industry average (28.0).
- High P/B ratio reflects premium valuation.
- Stock trading below DMA 50 (₹831) and DMA 200 (₹929), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 0.21%, showing reduced foreign investor confidence.
- Technical indicators (RSI 42.7, MACD -28.9) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹78.9 Cr to ₹105 Cr.
- DII holdings increased by 0.49%, reflecting domestic institutional support.
- Strong EPS of ₹16.6 highlights earnings strength.
🏭 Industry
- Industry P/E at 28.0, lower than company’s P/E, indicating premium valuation.
- Industrial manufacturing sector remains cyclical but supported by infrastructure and capital goods demand.
🔎 Conclusion
- Jyoti CNC shows strong earnings growth and efficient capital use.
- Valuation is premium compared to industry, but PEG ratio suggests growth potential.
- Entry zone between ₹687–720 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term momentum weakness and premium valuation warrant caution.