Jyoti CNC Automation Limited IPO
Apply
0
Avoid
0
- Market Presence and Positioning:
- The company claims to be one of the world’s leading manufacturers of CNC machines, with a notable market share in both India and globally.
- It emphasizes its prominence in the simultaneous 5-Axis CNC machines segment, catering to various industries, including aerospace and defense, auto, general engineering, EMS, dies and molds.
- Product Portfolio:
- The company offers a diverse range of CNC machines, including CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs), and CNC Horizontal Machining Centers (HMCs).
- They highlight the provision of customized solutions to customers based on their expertise built over two decades.
- Technological Advancements:
- The company is positioned as an industry player transitioning towards ‘Industry 4.0,’ offering solutions like ‘7th Sense,’ focused on automating diagnostic and analytical functions for CNC machines.
- It aligns with the expected growth in the CNC machines market, driven by industrial automation and the integration of computer-aided manufacturing.
- Global Reach and Distribution:
- The company has a global footprint, selling products in India and 16 other countries through principal offices and a network of sales and service centers.
- Huron, a step-down subsidiary acquired in 2007, contributes to expanding technological capabilities and global outreach, particularly in aerospace, defense, and high-end engineering applications.
- Clientele:
- The company boasts an impressive list of clients, including notable names in the aerospace, defense, and engineering sectors, both in India and globally.
- R&D Capabilities:
- The company emphasizes its vertically integrated operations and strong R&D capabilities, with dedicated facilities in India and France.
- Research and development play a crucial role in customizing products, ensuring product evolution, and staying aligned with industry changes.
- Manufacturing Facilities:
- The company operates three manufacturing facilities, two in Rajkot, Gujarat, and one in Strasbourg, France.
- It highlights certifications obtained for quality and environmental standards, along with the capacity to manufacture a specified number of machines annually.
- Operational Optimization and Efficiency:
- The business model underscores continuous efforts to optimize operations, with examples like implementing a cupola furnace for the foundry division and establishing a separate sand processing unit for operational streamlining.
- Leadership and Team:
- The leadership, including the Chairman and Managing Director, is recognized for entrepreneurship and has received industry awards.
- The Key Management Personnel (KMP) and Senior Management Personnel (SMP) are highlighted for their technical proficiency and long-term association with the company.
- Human Resources:
- As of a specified date, the company had a substantial workforce on a consolidated basis, including employees with long-term associations.
Objects of the Jyoti CNC Automation Limited IPO:
The company proposes to utilise the Net Proceeds from the Fresh Issue towards the following objects:
i. Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company;
ii. Funding long-term working capital requirements of the company; and
iii. General corporate purposes.
Jyoti CNC Automation Limited IPO Details:
| Open Date: | Jan 09 2024 |
| Close Date: | Jan 11 2024 |
| Total Shares: | 30,211,480 |
| Face Value: | ₹ 2 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 1,000 Cr. |
| Lot Size: | 45 Shares |
| Issue Price: | ₹ 315 - 331 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Jan 16 2024 |
Promoters And Management:
i.Parakramsinh Ghanshyamsinh Jadeja aged 55, is our Chairman and Managing Director. He is an undergraduate and was appointed as director on March 26, 2003. He has been associated with Jyoti Enterprise as a partner since 1989. He is also a director on the board of Indian Machine Tool Manufacturers Association and Neo Rajkot Foundation since December 10, 2015 and June 07, 2016, respectively.
ii. Sahdevsinh Lalubha Jadeja aged 58 is one of our Whole-Time Director. He is an undergraduate and was appointed as director on March 26, 2003. He has been continuing as a director of our Company since then. He has been associated with Jyoti Enterprise as a partner since 1989.
iii. Vikramsinh Raghuvirsinh Rana aged 53 is one of our Whole-Time Director. He is an undergraduate and was appointed as director of our Company on March 26, 2003.
Financials of Jyoti CNC Automation Limited IPO:
A. Balance Sheet
B. Profit & Loss Statement
C. Cash Flow Statement
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 | 6M-FY23 |
| Equity Share Capital | 29.48 | 29.48 | 32.93 | 39.15 |
| Reserves | 83 | 12 | 49 | 213 |
| Borrowings | 725 | 792 | 835 | 821 |
| Trade Payables | 312 | 295 | 413 | 359 |
| Other Liabilities | 239 | 158 | 185 | 273 |
| Total Liabilities | 1,276 | 1,245 | 1,433 | 1,453 |
| Net Block | 299 | 275 | 269 | 283 |
| Capital Work in Progress | 51 | 1 | 8 | 15 |
| Investments | 2 | 2 | 3 | 3 |
| Other Assets | 47 | 52 | 55 | 50 |
| Total NC Assets | 399 | 329 | 336 | 351 |
| Receivables | 217 | 200 | 146 | 133 |
| Inventory | 645 | 634 | 820 | 868 |
| Cash & Bank | 22 | 23 | 28 | 30 |
| Other Assets | 105 | 100 | 185 | 324 |
| Face value | 2 | 2 | 2 | 2 |
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 | 6M-FY23 |
| Sales | 580 | 746 | 929 | 510 |
| Raw Material Cost | 464 | 419 | 680 | 95 |
| Change in Inventory | -145 | 1 | -147 | 176 |
| Employee Cost | 131 | 142 | 166 | 90 |
| Other Expenses | 98 | 112 | 133 | 74 |
| Other Income | 10 | 4 | 23 | 1 |
| Depreciation | 38 | 36 | 34 | 16 |
| EBITDA | 42 | 76 | 121 | 75 |
| EBITDA Margin | 7.19% | 10.21% | 12.99% | 14.73% |
| Interest | 76 | 82 | 90 | 49 |
| Profit before tax | -72 | -42 | 28 | 10 |
| Tax | -2 | 7 | 13 | 7 |
| Net profit | -70 | -48 | 15 | 3 |
| NPM (%) | -11.87% | -6.44% | 1.58% | 0.66% |
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 | 6M-FY23 |
| Cash From Operating Activity | ||||
| Profit From Operation | 40 | 106 | 96 | 76 |
| Receivable | -20 | 16 | 54 | 14 |
| Inventory | -58 | 11 | -186 | -48 |
| Payable | 41 | -17 | 118 | -54 |
| Other WC Items | 25 | -77 | -63 | -61 |
| Working Capital Changes | -14 | -67 | -77 | -150 |
| Direct Taxes | -0.4 | -0.6 | -7 | -0.3 |
| Net Cash Inflow from Operating Activity | 26 | 39 | 12 | -74 |
| Cash from Investing Activity | ||||
| Fixed assets purchased | -14 | -41 | -34 | -37 |
| Investments purchased | -2 | 0 | -1 | 0 |
| Investment sold | 0 | 1 | 0 | 0 |
| Other investing items | -2 | 8 | 4 | 0.1 |
| Net cash inflow from investing activities | -18 | -31 | -32 | -36.4 |
| Cash from Financing Activity | ||||
| Proceeds from shares | 0 | 0 | 50 | 166 |
| Proceeds from borrowings | 74 | 67 | 73 | -14 |
| Intrest paid fin | -76 | -82 | -90 | -49 |
| Net Cash Flow | 7 | -8 | 14 | -7 |
Comparison With Peers:
| Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
| Jyoti CNC Automation Limited | 929 | 15 | 0.66 | 499.8 | 331 | 7,527 |
| Elgi Equipments Limited | 3041 | 371 | 11.70 | 42.4 | 537 | 17,026 |
| Lakshmi Machine Works Limited | 4,719 | 384 | 359.47 | 35.1 | 13,670 | 14,604 |
| Triveni Turbine Limited | 1,248 | 193 | 6.06 | 57.5 | 421 | 13,381 |
| TD Power Systems Limited | 872 | 97 | 6.2 | 37.6 | 274 | 4,278 |
| Macpower CNC Machines Ltd | 202 | 13 | 12.88 | 46.9 | 688 | 688 |
Recommendation on Jyoti CNC Automation Limited IPO:
Review And Recommendation of Jyoti CNC Automation Limited IPO By IZ team is 4/10
1. Jyoti CNC Automation Limited, incorporated on January 17, 1991, is a leading manufacturer of metal-cutting CNC machines.
2. It holds the third-largest market share in India (10% in Fiscal 2023) and twelfth globally (0.4% in 2022).
3. The company offers over 200 variants across 44 series of CNC machines.
4. Notable products include CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers, and CNC Horizontal Machining Centers.
5. They focus on Industry 4.0 solutions, including their ‘7th Sense’ multifunctional solutions package.
6. The current market size for CNC machine consumption in India stands between INR 8,000 to 9,000 Crores. Over the next five years, this sector is projected to expand to approximately INR 13,000 Crores. This indicates a relatively modest CAGR growth in the sector. While there are significant opportunities for export, it is important to note that the competition in the global market is intense.
7. Jyoti CNC currently holds a 10% share in this market. However, it's important to recognize the presence of numerous competitors in the CNC machine manufacturing sector in India, underscoring a highly competitive market landscape.
8. The Revenue of the company has increased from INR 580 cr in Fy19 to expected INR 1000 in FY24. This is a modest growth in the topline.
9. The company was loss making in Fy21 and Fy22 and has INR 15 Cr and expected INR 6 Cr Profit in Fy23 and Fy24 respectively.
10. The IPO is coming at Mcap of INR 7200 Cr which looks on higher side.
Lead Manager of Jyoti CNC Automation Limited IPO:
Registrar of Jyoti CNC Automation Limited IPO:
Company Address:
Jyoti CNC Automation Limited
G - 506, Lodhika GIDC
Village Metoda,
Rajkot – 360 021,
Phone: + 91-2827–235182
Email: investors@jyoti.co.in
Website: https://jyoti.co.in/
Discussion on Jyoti CNC Automation Limited IPO:
Leave a Reply
You must be logged in to post a comment.