CRAFTSMAN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🛠️ Fundamental Analysis: Craftsman Automation Ltd (CRAFTSMAN) Fundamental Rating: 3.6

📊 Core Financial Breakdown

Profitability

EPS: ₹88.4 ➜ strong earnings per share

PAT growth: 42.1% QoQ ➜ robust rebound

Return Metrics

ROCE: 11.7% | ROE: 9.41% ➜ moderate capital efficiency

Leverage Profile

Debt-to-equity: 0.83 ➜ highly leveraged — monitor debt servicing

Dividend Yield: 0.08% ➜ minimal income payout — growth focus

💸 Valuation Overview

Indicator Value Interpretation

P/E Ratio 66.8 significantly higher than industry avg (31.2)

P/B Ratio ~5.38 (₹6,448 / ₹1,198) ➜ premium asset pricing

PEG Ratio 7.10 rich valuation — high growth already priced in

📉 Conclusion: Trading at elevated multiples. Suggests limited upside without strong growth acceleration.

🏭 Business Model & Competitive Edge

Precision manufacturing in segments like

Automotive powertrain components

Storage solutions

Industrial machinery

Competitive Moats

Deep client relationships with OEMs

Diversified product base across verticals

Backward-integrated engineering capabilities

⚠️ But capital-intensive operations and cyclical exposure to auto demand require caution.

📈 Technical Sentiment

RSI: 67.0 ➜ near overbought levels

MACD: +224 ➜ strong bullish momentum

Price trading well above DMA 50 & DMA 200 ➜ uptrend intact

✅ Suggested Entry Zone: ₹5,800–₹6,150 📌 Avoid chasing highs; better to accumulate during dips, especially with high RSI

🧭 Long-Term Investment View

🚗 Proxy to India’s manufacturing renaissance and export potential

🧰 Strong engineering base, but cyclical headwinds exist

💡 Long-term thesis contingent on scalability and margin improvement

⚠️ Conservative investors may wait for better valuation alignment or wider economic clarity.

Want me to line this up against peers like Sundram Fasteners or Endurance Tech? I can create a head-to-head fundamentals table to spotlight sector efficiency and valuation sweet spots.

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