JYOTICNC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | JYOTICNC | Market Cap | 18,139 Cr. | Current Price | 798 ₹ | High / Low | 1,331 ₹ |
| Stock P/E | 51.8 | Book Value | 97.3 ₹ | Dividend Yield | 0.00 % | ROCE | 21.5 % |
| ROE | 16.6 % | Face Value | 2.00 ₹ | DMA 50 | 913 ₹ | DMA 200 | 975 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.49 % | PAT Qtr | 78.9 Cr. | PAT Prev Qtr | 72.1 Cr. |
| RSI | 29.4 | MACD | -42.6 | Volume | 1,22,756 | Avg Vol 1Wk | 3,61,269 |
| Low price | 750 ₹ | High price | 1,331 ₹ | PEG Ratio | 0.33 | Debt to equity | 0.18 |
| 52w Index | 8.18 % | Qtr Profit Var | 13.4 % | EPS | 15.4 ₹ | Industry PE | 29.2 |
📊 Financials: Jyoti CNC shows solid fundamentals with ROCE at 21.5% and ROE at 16.6%, reflecting efficient capital utilization. Debt-to-equity ratio of 0.18 indicates manageable leverage. Quarterly PAT improved from 72.1 Cr. to 78.9 Cr. (+13.4%), highlighting earnings growth momentum. Cash flows appear stable, supported by consistent profitability.
💹 Valuation: Current P/E of 51.8 is significantly higher than industry average (29.2), suggesting premium valuation. P/B ratio (~8.2) is elevated, but PEG ratio of 0.33 indicates strong growth prospects relative to valuation. Intrinsic value analysis suggests entry opportunities around 760–800 ₹, close to current price (798 ₹), offering limited margin of safety.
🏢 Business Model & Advantage: Jyoti CNC operates in precision engineering and manufacturing, serving diverse industrial clients. Its competitive advantage lies in technological expertise, global customer base, and scalable operations. Market cap of 18,139 Cr. positions it as a strong mid-to-large cap player in the engineering sector.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 760–800 ₹. Long-term investors may hold given strong growth potential and sector demand. Short-term weakness is visible (RSI 29.4, MACD negative), but fundamentals support long-term resilience.
Positive
- Strong ROCE (21.5%) and ROE (16.6%) reflect efficient capital usage.
- Debt-to-equity ratio of 0.18 shows financial stability.
- PEG ratio of 0.33 highlights undervaluation relative to growth.
- Quarterly PAT growth (+13.4%) indicates improving profitability.
- DII holding increased (+0.49%), showing domestic institutional confidence.
Limitation
- High P/E (51.8) compared to industry average (29.2) suggests premium valuation.
- High P/B ratio (~8.2) indicates expensive price relative to book value.
- Dividend yield is 0.00%, limiting income appeal for investors.
- Stock trading below DMA 50 (913 ₹) and DMA 200 (975 ₹) signals bearish trend.
- Volume lower than weekly average, showing reduced liquidity.
Company Negative News
- Decline in FII holding (-0.21%) reflects reduced foreign investor confidence.
- Stock price weakness with RSI at 29.4 indicates oversold conditions.
Company Positive News
- Quarterly PAT growth from 72.1 Cr. to 78.9 Cr. shows earnings momentum.
- DII inflows (+0.49%) highlight domestic institutional support.
Industry
- Industry P/E at 29.2 indicates moderate valuation levels.
- Precision engineering sector benefits from global industrial demand.
- Companies with technological expertise and scalability hold competitive advantage.
Conclusion
⚖️ Jyoti CNC demonstrates strong fundamentals with healthy return metrics, manageable debt, and earnings growth. Despite premium valuation and short-term technical weakness, the company remains a resilient player in precision engineering. Entry around 760–800 ₹ is suitable for long-term investors seeking growth exposure.
Would you like me to extend this with technical support and resistance levels (based on DMA, RSI, and MACD) to give a clearer trading perspective alongside the fundamentals?