CRAFTSMAN - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.5

📈 Positive

• 📈 Quarterly PAT growth of 23% (₹39.7 Cr. vs ₹27.5 Cr.) indicates improving profitability.
• 📈 DII holding increased by 1.70%, showing rising domestic institutional confidence.
• 📉 Trading above DMA200 (₹5,933), suggesting medium-term bullish sentiment.
• 📈 EPS of ₹42.4 supports earnings visibility and valuation strength.

⚠️ Limitation

• 📉 Extremely high P/E of 157 vs industry average of 32.6 suggests severe overvaluation.
• 📉 Negative PEG ratio (-9.66) implies valuation is not supported by sustainable growth.
• 📉 Low ROE (4.31%) and ROCE (8.11%) reflect weak capital efficiency.
• 📉 Dividend yield of 0.08% offers negligible passive income.

📰 Company Negative News

• 📉 FII holding declined by 0.39%, indicating reduced foreign investor interest.
• 📉 MACD at -46.9 suggests bearish technical momentum despite RSI at 51.0.

🌟 Company Positive News

• 📈 Volume above 1-week average signals rising investor interest.
• 📈 52-week performance up 81.8%, showing strong price appreciation and market optimism.

🏭 Industry

• 🏭 CRAFTSMAN operates in precision manufacturing and engineering solutions, serving automotive, industrial, and storage segments.
• 📊 Industry P/E of 32.6 reflects moderate growth expectations and cyclical exposure to industrial demand.

🧭 Conclusion

• 📌 Suggested entry zone: ₹6,300–₹6,500, near DMA50 for better margin of safety.
• 🕰️ Long-term holding cautious due to valuation concerns and low return metrics.
• ⚖️ Monitor earnings consistency and capital efficiency before aggressive accumulation.