Jyoti CNC: ₹4,848 cr order book meets a 55x price

Jyoti CNC Automation Limited (NSE: JYOTICNC) closed at ₹1,050 on 18 September, a new 52-week high. Its order book stands at ₹4,848 crore. What happened Q1 FY27 consolidated revenue rose 24% to ₹508.5 crore. Consolidated profit was ₹57 crore. The India business grew faster, with standalone revenue up 37% to ₹509 crore and profit up 21% to ₹87.5 crore. Aerospace and defence now make up 37% of revenue, against 30% a year ago, and 38% of the order book. The company sold 1,406 machines, up from 1,117. Why it matters India imports most of its high-end machine tools. Every defence and aerospace order needs them. Jyoti is adding capacity to 16,000 machines a year, with a further ₹450 crore of capex planned. My view First, the number that confused the market. French arm Huron changed its accounting and did not book ₹35 crore of revenue and ₹22 crore of margin. About ₹100 crore sits parked across seven or eight machines. It will land in later quarters. So treat the next set of results with care, because some of that growth is already earned, not new. Second, the price. At 55 times earnings, the stock is at its highest in a year. Order intake was ₹601 crore against execution of ₹485 crore. That is growth, but not the kind that justifies any multiple. Third, the cash. Net debt is about ₹700 crore and inventory is heavy. Watch cash flow, not just the order book. What I am watching Q2 FY27 results in November, the deferred Huron revenue, and whether order intake tracks the ₹2,500 to ₹3,000 crore full year guidance. On the chart, ₹1,066 is the high, ₹900 is the first support. My stance: Hold. Good business, demanding price. Add only on a fall towards ₹900. Disclosure: I do not hold a position in Jyoti CNC Automation Limited at the time of writing. This is not investment advice.