Jyoti CNC Automation Limited

Industrials — Specialty Industrial Machinery · NSE

₹993.00+₹13.60 (+1.39%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Jyoti CNC Automation Limited engages in the manufacture and sale of metal cutting computer numerical control machines in India, rest of Asia, Europe, the Middle East, North America, South America, and Africa.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees2,701

Annual revenue₹2,091 Cr

How does it make money?

Turns over ₹2,091 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 2,701 employees supports ₹77.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin27.8%

Net margin16.1%

Revenue / employee₹77.4 lakh

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.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.8% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE21.8%

ROE16.8%

Peer median ROE17.1%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 28.4% and earnings to grow about 39.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.4%

Est. earnings growth+39.6%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +126% while net margin moved -2823% 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+126%

Margin effect-2823%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 70.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 71.2x
✗ P/B of 11.29x is a steep premium to book

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

43/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

70.2x

2Y Median

71.2x

28 monthly readings · mean 95.9x · range 42.9x–171.2x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 71.2x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 66.2x.

vs. its own history

Fair

71.2x median over 28 months · -1%

vs. sector peers

Fair

66.2x median of 4 peers · +6%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

70.2x

P/B

11.29x

EV/EBITDA

40.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.8% to 27.8% over 3 years.
Return on equity is rising
ROE has improved from -6.7% to 16.8%.
High return on capital employed
ROCE of 21.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 36.1% to 21.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 311% against revenue growth of 126% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 311% against revenue up 126% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.8% to 27.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 311% against revenue up 126%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
Small 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 23% a year✓ 31.2% CAGR
Latest reported year was 24.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹269 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 21.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹22,583 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

70.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.29x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹14.14

Profitable

Profitable on a per-share basis

ROE

16.8%

Strong

Strong capital efficiency

ROCE

21.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

24.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-20.1%

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

-₹269 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹993

P/E (Forward)

39.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.4%

Good

Healthy core-business profitability

Net Margin

14.7%

Good

Strong bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.42

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1043.8 / 985.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹926 Cr	₹1,334 Cr	₹1,815 Cr	₹2,091 Cr	+31.2%
EBITDA	₹91 Cr	₹297 Cr	₹499 Cr	₹581 Cr	+85.8%
EBITDA Margin	9.8%	22.3%	27.5%	27.8%	—
PAT (Net Profit)	-₹5 Cr	₹151 Cr	₹316 Cr	₹336 Cr	—
EPS	₹-0.24	₹7.89	₹13.9	₹14.78	—
ROE	-6.7%	11.1%	18.7%	16.8%	—
ROCE	36.1%	18.1%	25.1%	21.8%	—
Total Debt	₹835 Cr	₹304 Cr	₹497 Cr	₹853 Cr	+0.7%
Free Cash Flow	₹8 Cr	-₹163 Cr	-₹415 Cr	-₹269 Cr	—

🟢 Revenue has grown at 31.2% a year over 3 years.

🟢 EBITDA has grown at 85.8% a year over 3 years.

🟢 EBITDA Margin has risen from 9.8% to 27.8% over 3 years (+18.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5 Cr to ₹336 Cr.

🟢 EPS has turned positive, from ₹-0.24 to ₹14.78.

🟢 ROE has risen from -6.7% to 16.8% over 3 years (+23.4 pts).

🔴 ROCE has fallen from 36.1% to 21.8% over 3 years (-14.3 pts).

🟡 Total Debt has been broadly flat over 3 years (0.7% a year).

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹269 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,615 Cr

Total Liabilities

₹1,614 Cr

Total Debt

₹853 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

₹54 Cr

Capex

-₹323 Cr

Shareholding (proxy)

Institutional Holding

14.6%

Insider Holding

67.3%

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,057.75

+6.5% vs CMP

Target Range

₹840 – ₹1,275

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

2 mixed4 general

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.

Jyoti CNC Automation Share Price News and Valuation View

Univest, 24 Sept

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

BusinessLine, 22 Sept

Nirmal Bang sees strong re-rating in Jyoti CNC, assigns 'Buy'; stock up 4%

Business Standard, 24 Jun

Jyoti CNC Standalone Q1 Net Profit At ₹87.5 Crore vs ₹72.1 Crore YoY

Sahi, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Jyoti CNC Automation (JYOTICNC.NS) Holds Near ₹1029.6 as Stock Consolidates Below ₹1081 Resistance - Trend Reversal Picks

siam.in, 05 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong12/15

🔴ValuationDemanding5.3/15

🟡RiskModerate4.5/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 23% a year31.2% CAGR
✓EBITDA margin holds above 26%27.8%
✗Free cash flow remains positive-₹269 Cr
✓Debt / EBITDA stays below 2x1.5x
✓ROCE stays above 19%21.8%