Jyoti CNC Automation IPO

jyoti cnc automation ipo

Jyoti CNC Automation’s IPO is still upcoming and opens for subscription tomorrow, January 9th, 2024 and closes on January 11th, 2024. Here’s the complete information I could gather:

Issue details:

  • Type: Main-board IPO
  • Issue size: 30,211,480 equity shares of Rs. 2 each, aggregating to Rs. 1,000 crore
  • Price band: Rs. 315 – Rs. 331 per share
  • Minimum order quantity: 45 shares and in multiples thereafter
  • Open date: January 9, 2024
  • Close date: January 11, 2024
  • Listing: BSE and NSE (tentatively on January 16, 2024)
  • Lead managers: HDFC Bank Ltd., ICICI Securities Ltd., Axis Capital Ltd., IIFL Securities Ltd., Yes Securities Ltd.

Company details:

  • Jyoti CNC Automation Limited is a leading manufacturer of CNC Turning Machines and Vertical Machining Centres in India.
  • They offer over 200 variants across 44 series and have supplied over 30,000 machines globally.
  • They have a strong presence in India and export to 16 other countries.

Financial Performance:

  • Revenue for FY23 was Rs. 529 crore, up from Rs. 355 crore in FY22.
  • Net profit for FY23 was Rs. 60 crore, up from Rs. 39 crore in FY22.

Key risks:

  • Competition in the CNC machine market is intense.
  • The company’s growth is dependent on the overall health of the manufacturing sector.
  • Any delays in product launches or new project announcements could impact the stock price.


Do remember:

  • This information is for informational purposes only and should not be construed as investment advice. Please consult with a financial advisor before making any investment decisions.
  • The IPO is still open, so the grey market premium (GMP) might change.

jyoti cnc automation ipo

Detailed Analysis of Jyoti CNC Automation IPO


  • Leader in CNC machines: Jyoti CNC is a leading manufacturer of CNC Turning Machines and Vertical Machining Centres in India, offering over 200 variants and boasting a global presence. This robust product portfolio and established market position provide a strong foundation for growth.
  • Healthy financials: The company has shown consistent revenue growth over the past two years, with FY23 seeing a 49% increase compared to FY22. They also turned profitable in FY23, further strengthening their financial health.
  • Strong order book: With an order book of over Rs. 3315 crore, Jyoti CNC has secured future revenue and demonstrated healthy demand for their products.
  • Government tailwinds: The Indian government’s focus on “Make in India” and promoting domestic manufacturing bodes well for companies like Jyoti CNC, potentially increasing demand for their products.


  • Valuation concerns: At the higher end of the price band, the IPO is priced at a P/E of 501.52 based on FY23 earnings, and 1103.33 on annualized FY24 earnings. This high valuation raises concerns about potential overpricing and risks for investors.
  • Profitability volatility: While profitable in FY23, the company’s recent profitability was partly driven by an exceptional gain from loan waiver. This raises questions about the sustainability of its future profitability.
  • Competition: The CNC machine market is highly competitive, with several established players vying for market share. Jyoti CNC needs to continuously innovate and optimize its offerings to maintain its competitive edge.
  • Limited export reach: Although present in 16 countries, export revenue contributes a relatively small portion to the overall revenue. Expanding their export footprint could diversify their revenue streams and mitigate domestic economic risks.


  • Growing CNC machine market: The global CNC machine market is expected to grow at a CAGR of 5.5% from 2023 to 2028, driven by factors like increasing automation and technological advancements. This presents a significant growth opportunity for Jyoti CNC.
  • Focus on R&D: Jyoti CNC has invested heavily in R&D, focusing on developing new and efficient CNC machines. This continuous innovation can help them stay ahead of the competition and cater to evolving customer needs.
  • Expansion plans: The company has plans to expand its manufacturing capacity and diversify its product offerings. This strategic expansion can drive future revenue growth and market share gains.


  • Macroeconomic headwinds: Global economic slowdown or a downturn in the manufacturing sector could negatively impact demand for CNC machines, posing a risk to Jyoti CNC’s growth trajectory.
  • Supply chain disruptions: Any disruptions in the global supply chain for raw materials or components could delay production and hinder Jyoti CNC’s ability to meet delivery timelines.
  • Technological advancements: Rapid advancements in CNC technology could render existing machines obsolete and create pressure for Jyoti CNC to constantly adapt and upgrade its offerings.


Jyoti CNC Automation is a strong company with a leading position in the Indian CNC machine market. However, the high valuation, recent profitability driven by exceptional gains, and competitive landscape raise concerns for investors. A careful analysis of the company’s financials, growth prospects, and risk factors is crucial before making any investment decisions.

Disclaimer: This analysis is for informational purposes only and should not be construed as investment advice. Please consult with a financial advisor before making any investment decisions.

I hope this detailed analysis provides a more comprehensive picture of Jyoti CNC Automation’s IPO and helps you make informed investment choices.

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