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Jyoti CNC Automation Limited is one of India’s largest CNC machine tool manufacturers.
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The Company’s range of products that includes CNC Turning Centres, Turn-Mill Centers, Vertical Machining Centers (VMC), Horizontal Machining Centers (HMC), and advanced 5-axis Machining Centers, along with solutions for Industry 4.0 and Artificial Intelligence (AI).
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Vertically integrated company with in-house manufacturing of machine components such as spindles, tool-changers, pallet changers, rotary tables and universal heads in-house. The company has its own R&D Centers, Foundry, Machine Shop, and Sheet Metal Unit. Also has in-house design capabilities.
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Focus on R&D with dedicated R&D facilities at Rajkot and Strasbourg.
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diverse customer base. Some of the marquee customers include ISRO, Brahmos, Harsha Engineers, Bosch, Tata Advanced Systems etc.
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Exports constitute ~ 40% of revenue.
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Catering to Aerospace, Defence, Auto, EMS, Dies and Moulds and General Manufacturing Industry
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Orderbook as on 31 Dec 2023:
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Vertically Integrated Company
Industry Size:
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As per management, India consumed $3 billion worth of CNC machine last year (approximately 24,000 crore). of this 65% was imported while 35% was domestic over the next 5–7 years the consumption is expected to grow at 20%.
- The company eyes that the proportion of imports will decrease in the next 5-7 years that is import substitution is likely to happen. Secondly, the market itself is growing at 20%.
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85% of the total market is metal cutting and 15% metal forming. Jyoti CNC status metal cutting
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Overall market the entry level is domesticated 80–85% is domestic while in high end machines 90% is imports. the company is focusing on this high end of the market, where competition is mainly from Germany and Japan.
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The Company operates in a niche growing sector. But a good business is not always a good investment if the valuation is not in favor.
I think this is a good stock to discuss on this forum
Disclosure: Tracking position
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