JYOTICNC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials & Profitability

Profit Growth: PAT dropped from ₹122 Cr to ₹72.1 Cr QoQ, but YoY profit variation remains strong at 51.2%, signaling robust long-term growth.

Return Metrics

ROE: 16.6% and ROCE: 21.5% — excellent, reflecting efficient capital deployment.

EPS: ₹15.0 — solid for a ₹931 stock, supporting valuation.

Debt Profile: Debt-to-equity at 0.10 — very low, indicating strong financial discipline.

Dividend Yield: 0.00% — no payouts yet, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 62.0 Richly valued vs. industry PE of 37.5.

P/B Ratio ~10.25 Expensive relative to book value ₹90.8.

PEG Ratio 0.40 Attractive — growth is reasonably priced.

🔍 Conclusion: Valuation is elevated, but PEG ratio suggests the premium is justified by growth potential.

🏭 Business Model & Competitive Edge

Core Operations: Jyoti CNC Automation is a leading manufacturer of CNC machines, serving automotive, aerospace, defense, and industrial sectors.

Strategic Strengths

73.9% quarterly revenue growth with 14.4% profit margin

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Strong export footprint and high-end precision engineering capabilities.

Positioned as a “diamond valuation” stock due to its niche dominance

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Growth Outlook

Analysts forecast 2025 targets between ₹967 and ₹998, with stop-loss levels around ₹899–₹918

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Historical 3-month return: +23.6%; 1-year return: −3.4% — short-term volatility, long-term promise.

📉 Technicals & Entry Zone

RSI: 51.7 — neutral, no strong momentum.

MACD: −9.94 — bearish signal.

DMA Levels: Price below both 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹900–₹920 — near technical support and stop-loss levels

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🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and sector tailwinds support long-term value.

Buy on Dips: Prefer entry near ₹900 with a 2–3 year horizon.

Monitor: Order book strength, export demand, and margin stability.

For detailed price targets and technical levels, explore Jyoti CNC’s 2025 forecast

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or valuation insights from Stocks-Buy

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. Let me know if you'd like a peer comparison with Inox Wind or AIA Engineering next.

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stockpricearchive.com

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www.stocks-buy.com

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