Jyoti CNC Automation Limited
Company Overview:
Jyoti CNC Automation Limited is one of the world’s leading manufacturers of metal cutting computer numerical control (CNC) machines with the third largest market share in India accounting approximately 10% of the market share in India in FY23 and twelfth largest market share globally accounting for 0.4% of the market share globally in CY22. The company is a prominent manufacturer of simultaneous 5-Axis CNC machines in India and a supplier of one of the most diverse portfolios of CNC machines in India, including CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs), CNC Horizontal Machining Centers (HMCs), simultaneous 3-Axis CNC machining Centers, simultaneous 5-Axis CNC machining Centers and multi-tasking machines.
Key Highlights:
1. Manufacturing Facility: The company operates out of three manufacturing facilities, two in Rajkot, Gujarat and one in Strasbourg, France, which is equipped with capabilities to design, develop and manufacture a product portfolio. The Indian manufacturing facilities has obtained ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification and manufacturing facility in Strasbourg, France has also obtained ISO 9001:2015 certification. As of 1HFY24, the company could manufacture 4,400 machines p.a. in India and 121 machines p.a. in France.
2. Marquee customers across various industries: The company has diversified customers across various industrial areas such as aerospace and defence, auto and auto components, general engineering, EMS, dies and moulds, and others. Some of the marquee customers are ISRO, BrahMos Aerospace Thiruvananthapuram Ltd., Tata Advances System Ltd., Bharat Forge Ltd., Bosch Ltd., Harsha Engineers International Limited, Uniparts India Ltd.
3. Geographical presence across domestic as well as international territory: During the last three financial years the company has sold products in India and 16 other countries across the globe through principal offices in India, France, Germany, Turkey and Canada. The company sells products in Romania, France, Poland, Belgium, Italy, and United Kingdom through Huron’s established dealer network and also has 29 sales and service centres (including sales offices located within the precincts of one of the Manufacturing Facilities in Rajkot, Gujrat) spread across 12 states in India.
4. Well established track record & Robust order book: The company offers over 200 variants across 44 series. During 1HFY24 and last three financial years, the company has supplied over 8,400 CNC machines to more than 3,500 customers in India and across Asia (excluding India), Europe, North America and rest of the world. As of 1HFY24, the company had an order book of Rs 3,315.3 cr including an order of Rs 305.2 cr from an entity in the electronics manufacturing services (EMS) industry.
Valuation:
The company is valued at FY23 EV/EBITDA multiple of 85.6x based on the upper price band on post-issue capital. The company currently holds a market share of over 10% in India, making them the third largest player in the country. Globally, the company accounts for a 0.4% market share. The company will use the proceeds of the IPO to repay the debt to the tune of Rs 475 cr, thereby reducing its long term debt on the balance sheet by ~50%. Post IPO, leverage on the balance sheet is likely to reduce significantly, as the company will utilise Rs 360 cr from the IPO proceeds to fund its working capital requirement.
Click here to download Jyoti CNC Automation Limited IPO Note
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