Jyoti CNC IPO: The Good and The Bad

About the company

Jyoti CNC is India's third-largest manufacturer of CNC machines. It operates two manufacturing facilities in India and one in France.

IPO details

Post IPO

Financial history

Key ratios

The positives

It is the third-largest CNC manufacturer in India by revenue.

The positives

Diverse clientele. It manufactures CNC machines for various industries, including aerospace, defence, automotive, and other high-end engineering industries.

The negatives

High working capital requirement. It has a high cash conversion cycle (around 234 days in FY23) and has to rely on debt for working capital requirements.

The negatives

Loss-making subsidiaries. It incurred losses on a consolidated basis in FY22 and FY21 due to losses incurred by its subsidiaries.

Risk report

Is the company's net debt-to-equity ratio less than one? No. Its net debt-to-equity ratio, as of September 2023, was 3.1 times.

To read the complete risk report, head to vro.in