Jyoti CNC Automation share price: Jyoti CNC Automation, a leading manufacturer of metal cutting computer numerical control (CNC) machines, listed at a 12.4% premium as it debuted on the stock exchanges on Tuesday. The stock opened at Rs 372 on BSE, surpassing its issue price of Rs 331, while on NSE, it opened at Rs 370, marking an increase of Rs 39 or 11.8%.
Prior to the listing, the company’s shares were trading at a premium of Rs 41 in the unlisted market, according to an ET report.The IPO of Jyoti CNC Automation received a strong response from investors, with an overall subscription rate of 38.5 times.
The company plans to utilize the net proceeds from the IPO for loan repayment, funding long-term working capital requirements, and general corporate purposes. However, analysts have expressed concerns regarding Jyoti’s financial performance, citing past losses and a negative return on equity. The company’s high price-to-earnings (P/E) ratio of 324.5x, significantly higher than the industry average of 50x, further adds to the risk factor.
Shivani Nyati, Head of Wealth at Swastika Investmart, stated, “The hefty P/E ratio of 324.5x is also significantly higher than the industry average of 50x, further amplifying the risk factor.”
Jyoti CNC Automation holds the third largest market share in India, accounting for approximately 10% of the market in FY23. It specializes in providing customized solutions to industries such as aerospace and defense, auto and auto components, general engineering, EMS, dies and molds, and more. The company’s strengths include a robust order book of Rs 3,300 crore, a diversified product portfolio, a strong customer base, global outreach, and effective utilization of technology to capture market opportunities.
In terms of financial performance, Jyoti CNC Automation witnessed a revenue and EBITDA CAGR of 27% and 75%, respectively, from FY21 to FY23. After incurring a net loss of Rs 70 crore in FY21, the company posted a profit of Rs 15 crore in FY23. In FY23, its revenues grew by 24% to Rs 929 crore, and the company reported a profit of Rs 15 crore, compared to a loss of Rs 48 crore in the previous year. For the six months ending in September 2023, revenues stood at Rs 509 crore, with a profit of Rs 3.3 crore.
Equirus Capital, ICICI Securities, and SBI Capital Markets served as the book running lead managers for the IPO.
Prior to the listing, the company’s shares were trading at a premium of Rs 41 in the unlisted market, according to an ET report.The IPO of Jyoti CNC Automation received a strong response from investors, with an overall subscription rate of 38.5 times.
The company plans to utilize the net proceeds from the IPO for loan repayment, funding long-term working capital requirements, and general corporate purposes. However, analysts have expressed concerns regarding Jyoti’s financial performance, citing past losses and a negative return on equity. The company’s high price-to-earnings (P/E) ratio of 324.5x, significantly higher than the industry average of 50x, further adds to the risk factor.
Shivani Nyati, Head of Wealth at Swastika Investmart, stated, “The hefty P/E ratio of 324.5x is also significantly higher than the industry average of 50x, further amplifying the risk factor.”
Jyoti CNC Automation holds the third largest market share in India, accounting for approximately 10% of the market in FY23. It specializes in providing customized solutions to industries such as aerospace and defense, auto and auto components, general engineering, EMS, dies and molds, and more. The company’s strengths include a robust order book of Rs 3,300 crore, a diversified product portfolio, a strong customer base, global outreach, and effective utilization of technology to capture market opportunities.
In terms of financial performance, Jyoti CNC Automation witnessed a revenue and EBITDA CAGR of 27% and 75%, respectively, from FY21 to FY23. After incurring a net loss of Rs 70 crore in FY21, the company posted a profit of Rs 15 crore in FY23. In FY23, its revenues grew by 24% to Rs 929 crore, and the company reported a profit of Rs 15 crore, compared to a loss of Rs 48 crore in the previous year. For the six months ending in September 2023, revenues stood at Rs 509 crore, with a profit of Rs 3.3 crore.
Equirus Capital, ICICI Securities, and SBI Capital Markets served as the book running lead managers for the IPO.
