Jyoti CNC Automation, one of the major producers of metal-cutting computer numerical control equipment, has generously rewarded its shareholders since its debut, with shares steadily rising and smashing new records month after month.
In January 2024, the shares were worth ₹553 each. Today, they are worth ₹1,366 each share, a 147% increase. The stock has increased by 312.7% from its initial public offering price of ₹331 per share. Jyoti CNC made its debut on Dalal Street in January of last year.
This exceptional rebound in share prices can be attributed to the company’s solid financial performance in recent quarters, consistent order book growth, and position in the highly fragmented CNC machine sector, which has a small number of top manufacturers.
Jyoti CNC Automation solely manufactures and sells metal-cutting computer numerical control (CNC) machines. The company provides solutions to a wide range of industries, including aerospace, automobiles and auto parts, agriculture, die and mould, electronic manufacturing services (EMS), infrastructure, healthcare, oil and gas, power, railways, space research, and other general engineering industries.
During the September quarter, the company won fresh orders of ₹12,826 million, increasing its overall order book to ₹42,893 million. This is a 26% rise from the order book of ₹34,037 million at the end of the June quarter.
According to the company’s Q2FY25 earnings report, the aerospace industry accounted for 43% of the overall order book, with EMS and auto & auto components accounting for 17% and 15%, respectively.
Meanwhile, the acquisition of Huron Graffenstaden SAS, a global pioneer in 5-axis machining technology, has strengthened the company’s technological capabilities and established its global presence, including access and the ability to cater to global customers in key industries such as aerospace, defence, and other high-end engineering applications.
The expanding manufacturing industry is expected to drive the growth of the machine tools market, with considerable demand from major industries such as automotive, aerospace and defence, railways, capital goods, and consumer durables. Additionally, sectors such as general engineering, medical, and dies and moulds are major users of machine tools.
The aerospace industry accounts for more than 40% of the company’s sales, with predictions predicting that the aerospace market would reach around USD 1,388 billion by 2030, rising at an 8.2% CAGR, driven by higher aerospace spending due to geopolitical events.
The company’s primary aerospace clients include HAL, Boeing, Airbus, Safran, Tata Advanced Systems, and Rolls Royce.
Auto and auto components were the company’s second-largest revenue generator, and they are likely to continue to expand strongly in the coming years as electric vehicles become more prevalent.
According to recent forecasts, the worldwide electric vehicle (EV) industry will develop at a CAGR of 17.8% between 2024 and 2030, while India’s electric car market is predicted to rise at an amazing CAGR of 56.0% during the same period. Globally, the EV market is expected to reach USD 623.3 billion by 2028, increasing at a CAGR of 9.82%.
The Electronics Manufacturing Services (EMS) segment accounts for around 17% of the company’s revenue and is expected to increase at a 34% annual rate until FY26, reaching a value of USD 54.21 billion, according to recent forecasts.
According to recent media estimates, iPhone shipments from India reached an all-time high of USD 15 billion in FY24, while overall electronics exports increased by over 24% to USD 29.12 billion that year. The potential demand for CNC machines in India’s EMS sector is expected to exceed 100,000 units within the next five years.
India’s semiconductor industry is expected to increase at a CAGR of 19.7% between FY22-23 and FY26-27, demonstrating the sector’s potential for rapid development.
