Brokerage firm Anand Rathi has set a target price of Rs 1,275 for Jyoti CNC Automation, highlighting strong standalone growth and a robust order book. While the company achieved record machine deliveries, consolidated profits faced pressure due to operational hurdles at its French subsidiary, Huron.
Brokerage firm Anand Rathi has assigned a price target of Rs 1,275 to Jyoti CNC Automation, reflecting a positive outlook driven by the company's manufacturing capacity and healthy order inflow. The firm remains confident about the company’s trajectory, although investors are balancing this growth story against ongoing operational challenges in its international business.
The company’s performance in the second quarter of the 2027 fiscal year showed a clear split between its domestic and international units. On a standalone basis, the business thrived, reporting a 46% year-on-year jump in profit to Rs 114.9 crore. This growth was supported by record-breaking operational efficiency, with the company dispatching 1,911 machines during the quarter.
However, the consolidated financial results reflected a different picture, with net profit falling 15.1% to Rs 72.58 crore. This decline is largely attributed to the Huron subsidiary in France, which has been facing operational and regulatory hurdles. Specifically, delays in securing export licenses for certain technologies have created bottlenecks, affecting the overall bottom line. These issues also led to a compression in consolidated profit margins, which slipped to 21.8% from 24.5% in the same period last year.
Despite the pressure on international operations, the company’s core business remains supported by a strong demand environment. As of September 30, 2026, the company reported an order book of Rs 5,082 crore. This backlog provides significant revenue visibility, as the company works to execute these orders in the coming months. The firm’s ability to convert this large order book into revenue is a critical factor for its financial health.
Going forward, the primary areas for investors to track include the resolution of the export license issues at the Huron subsidiary and the subsequent recovery in consolidated profit margins. Successful execution of the existing order book and maintaining stable margins in the face of international regulatory requirements will be the key indicators of the company’s performance in the coming quarters.