Jyoti CNC Automation IPO

Jyoti CNC Automation is a metal cutting CNC (computer numerical control) machine manufacturer. It was founded in 1991 and holds the third-largest market share in India as of Fiscal 2023. The company manufactures a range of 5-axis CNC machines, including CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers, and CNC Horizontal Machining Centers.

Jyoti CNC Automation’s customers are spread across industries like aerospace, defense, auto, general engineering industries, among others. Their ‘7th Sense’ solution aligns with ‘Industry 4.0,’ automating diagnostic and analytical functions for CNC machines. With its vertically integrated processes, the company is able to deliver technologically pertinent and customized solutions.

Jyoti CNC Automation IPO Strengths

• The company is one of the leading CNC machine manufacturing companies globally and in India.
• It has a well-diversified global customer base spread across various industries.
• Strong R&D focus and tech ability to deliver innovative solutions.
• The company has vertically integrated operations which helps it to increase efficiencies and offer customisation.
• Experienced promoters and management team.

Jyoti CNC Automation IPO Risks

• The company has reported losses in the past.
• It has significant indebtedness and carries debt servicing obligations.
• It has substantial working capital requirements and working capital expenditure.
• Operates in a highly competitive market.
• The company does not have repeat orders from its Customers on an annual or bi-annual basis.
• It operates in the capital goods industry which is sensitive to general economic downturns.
• Faces foreign exchange risks.