Jyoti CNC Automation — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Heavy engineering & manufacturing industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Heavy engineering & manufacturing · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Jyoti CNC Automation JYOTICNC · you	₹23,938 Cr	72.2×	12.1×	36.2×	16.8%	16.1%	31.1%
Sector median	—	46.6×	6.3×	33.8×	13.1%	8.3%	11.4%
Bharat Heavy Electricals BHEL	₹1.4 L Cr	86.2×	5.3×	58.9×	6.1%	4.7%	13.1%
Thermax THERMAX	₹56,509 Cr	74.1×	10.2×	52.7×	13.0%	6.7%	9.7%
Supreme Industries SUPREMEIND	₹44,481 Cr	46.6×	7.2×	28.3×	15.5%	8.5%	6.8%
AIA Engineering AIAENG	₹42,332 Cr	33.8×	5.3×	33.8×	15.8%	28.7%	-3.4%
Astral ASTRAL	₹41,016 Cr	75.7×	10.0×	39.5×	13.2%	8.2%	8.4%
Welspun Corp WELCORP	₹37,274 Cr	23.1×	4.1×	17.4×	17.6%	9.6%	19.8%
PTC Industries PTCIL	₹27,793 Cr	275.9×	18.6×	212.1×	6.7%	16.8%	40.1%
Shyam Metalics and Energy SHYAMMETL	₹27,112 Cr	25.6×	2.4×	11.7×	9.3%	5.8%	13.7%

Peer comparison verdict

Jyoti trades at a premium to peers (P/E 72.2× vs median 46.6×), but its higher ROE of 16.8% (sector 13.1%) justifies much of that premium — quality rarely comes cheap.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

35% weight · 7 peers

Sector median PE46.6×

Fair value via PE₹684

25% weight · 8 peers

Sector median PB6.3×

Fair value via PB₹549

EV/EBITDA

40% weight · 7 peers

Sector median EV/EBITDA33.8×

Fair value via EV/EBITDA₹989

Blended peer fair value₹772

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.