Nirmal Bang has reiterated its 'Buy' rating on Jyoti CNC Automation Ltd. with a target price of ₹976, implying an upside of around 28% from current levels. According to reports from NDTV Profit, the brokerage expects the domestic CNC machine volume to grow more than 30% in FY27E, driven by rising consumption in auto and auto ancillary industries, general engineering, EMS, and aerospace equipment manufacturing industries.
Jyoti CNC should outpace industry growth supported by its leading domestic CNC manufacturing capabilities and a 21% domestic manufacturing market share, as reported by NDTV Profit. The company is positioned to benefit from strong domestic growth momentum and multi-year structural demand tailwinds in the CNC manufacturing sector. The brokerage expects robust demand across multiple industries including automotive, engineering, and aerospace sectors, with the domestic CNC machine volume projected to grow significantly above industry averages.
Despite near-term overhang from its European subsidiary Huron, the management has guided for normal operations and a big order win in Q2 and Q3 from France and Germany, according to NDTV Profit. Pending current investigation, Nirmal Bang has estimated a decline in revenue at Huron. A good FY27 at Huron would remain a positive surprise for its FY27 estimates, potentially boosting overall company performance and helping the stock outperform expectations.
The brokerage maintains its positive stance on Jyoti CNC despite the challenges at its European operations, citing the company's strong domestic market position and growth prospects. As reported by NDTV Profit, the combination of robust domestic demand, market leadership, and potential recovery at Huron provides a compelling investment case for the CNC manufacturing specialist. The target price of ₹976 reflects confidence in the company's ability to capitalize on strong domestic growth momentum and structural demand tailwinds in the CNC manufacturing sector.
