Jyoti Limited

Industrials — Specialty Industrial Machinery · BSE

₹70.50+₹4.30 (+6.50%)

DalalBaazaar Score

28 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Jyoti Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jyoti Limited designs, manufactures, and sells pumps and EPC pumping systems in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees213

Annual revenue₹276 Cr

How does it make money?

Turns over ₹276 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 213 employees supports ₹1.30 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +80% while net margin moved +117% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+80%

Margin effect+117%

DalalBaazaar Score

28/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

31/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

9.4x

3Y Median

23.3x

40 monthly readings · mean 20.9x · range 7.0x–44.9x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 3y median of 23.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 86% below the peer median of 66.2x.

vs. its own history

Cheap

23.3x median over 40 months · -59%

vs. sector peers

Cheap

66.2x median of 4 peers · -86%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

12.9x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 18% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 11.7% to 10.1% over 3 years.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Inventory building faster than salesFinancial
Inventory up 306% against revenue up 80% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.81 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 59% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 11.7% to 10.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 7.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.6% CAGR
Latest reported year was 8.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
5Valuation vs its own median of 23.3x✓ 9.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹163 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹7.47

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

8.4%

Modest

Modest growth

Profit Growth (YoY)

-13.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.7%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

0.81

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.0 / 60.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹153 Cr	₹175 Cr	₹245 Cr	₹276 Cr	+21.6%
EBITDA	₹18 Cr	₹14 Cr	₹22 Cr	₹28 Cr	+15.9%
EBITDA Margin	11.7%	7.9%	8.9%	10.1%	—
PAT (Net Profit)	₹5 Cr	₹8 Cr	₹16 Cr	₹18 Cr	+57.5%
EPS	₹2	₹3.65	₹7.03	₹7.82	+57.5%
ROCE	5.8%	25.1%	—	—	—
Total Debt	₹255 Cr	₹242 Cr	₹221 Cr	₹209 Cr	-6.4%
Free Cash Flow	₹15 Cr	₹21 Cr	₹13 Cr	₹11 Cr	-9.9%

🟢 Revenue has grown at 21.6% a year over 3 years.

🟢 EBITDA has grown at 15.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.7% to 10.1% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 57.5% a year over 3 years.

🟢 EPS has grown at 57.5% a year over 3 years.

🟢 Total Debt has shrunk at 6.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 9.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹325 Cr

Total Liabilities

₹346 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.0%

Corporate Actions

Ex-Dividend Date

11 Sept 2012

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 mixed1 negative2 general

Jyoti Ltd. Share Price Rise: Price Action and Valuation

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Jyoti CNC Automation (NSEI:JYOTICNC) Stock Forecast & Analyst Predictions

Simply Wall Street, 11 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Stock to buy today: Jyoti CNC Automation (₹1,113.60) – BUY

BusinessLine, 22 Sept

Jyoti Structures Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Jyoti CNC Automation Ltd. Share Price Rise Streak and

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Jyoti CNC promoter pledges 10 lakh shares to Bajaj Finance

scanx.trade, 29 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Jyoti Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑