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JYOTICNC - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.9
📊 Financial Overview
- Profitability: PAT declined from ₹122 Cr to ₹72.1 Cr QoQ, but YoY growth remains strong at 51.2%.
- Return Metrics: ROE at 16.6% and ROCE at 21.5% reflect solid capital efficiency.
- Valuation: P/E of 57.4 is above the industry average (35.8), suggesting a premium valuation.
- P/B Ratio: With a book value of ₹90.8 and price of ₹863, P/B is ~9.5, indicating a high valuation multiple.
- PEG Ratio: 0.37 suggests reasonable growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 0.10 is conservative, supporting financial stability.
- Momentum: RSI at 38.7 and MACD at -9.86 indicate bearish sentiment and potential for technical rebound.
🏢 Business Model & Competitive Edge
- Jyoti CNC Automation is a precision engineering company specializing in CNC machines and automation solutions.
- Strong export presence and advanced manufacturing capabilities offer competitive advantages.
- Focus on innovation and customization supports long-term scalability in industrial automation.
💡 Entry Zone Recommendation
- Current price is below both DMA 50 (₹927) and DMA 200 (₹1,011), indicating a bearish trend.
- Suggested Entry Zone: ₹820–₹850 for accumulation.
- Long-term holding viable if earnings growth sustains and valuation normalizes.
✅ Positive
- Strong ROE and ROCE indicate efficient operations.
- Low debt-to-equity ratio enhances financial resilience.
- FII and DII holdings increased by 2.45% and 2.57% respectively, showing strong institutional interest.
⚠️ Limitation
- High P/E and P/B ratios suggest valuation concerns.
- QoQ PAT decline may reflect margin pressure or cyclical softness.
- Zero dividend yield may deter income-focused investors.
📉 Company Negative News
- Stock has corrected ~43% from its 52-week high of ₹1,504.
- MACD and RSI indicate weak short-term momentum.
📈 Company Positive News
- Strong YoY profit growth and rising institutional interest.
- Strategic focus on automation and exports gaining traction.
🏭 Industry
- Industrial automation and precision engineering are driven by manufacturing upgrades and export demand.
- Industry P/E of 35.8 supports moderate valuation for growth-oriented players.
🧾 Conclusion
- Jyoti CNC is a high-potential automation player with strong fundamentals and institutional backing.
- Entry near ₹820–₹850 offers a favorable long-term opportunity.
- Monitor earnings consistency and valuation metrics for sustained upside.
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