⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CRAFTSMAN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | CRAFTSMAN | Market Cap | 16,446 Cr. | Current Price | 6,892 ₹ | High / Low | 8,220 ₹ |
| Stock P/E | 95.1 | Book Value | 1,206 ₹ | Dividend Yield | 0.07 % | ROCE | 8.11 % |
| ROE | 4.31 % | Face Value | 5.00 ₹ | DMA 50 | 7,450 ₹ | DMA 200 | 6,832 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | 0.88 % | PAT Qtr | 58.4 Cr. | PAT Prev Qtr | 47.2 Cr. |
| RSI | 36.6 | MACD | -216 | Volume | 78,627 | Avg Vol 1Wk | 83,731 |
| Low price | 3,700 ₹ | High price | 8,220 ₹ | PEG Ratio | -5.85 | Debt to equity | 0.96 |
| 52w Index | 70.6 % | Qtr Profit Var | 1,005 % | EPS | 71.6 ₹ | Industry PE | 25.0 |
📊 Core Financials
- Revenue Growth: PAT improved (₹58.4 Cr vs ₹47.2 Cr), but overall margins remain thin
- Profit Margins: EPS ₹71.6, but ROE only 4.31% indicates weak profitability
- Debt Ratio: High leverage (Debt-to-Equity 0.96)
- Cash Flows: Supported by recent profit spike, but sustainability questionable
- Return Metrics: ROCE 8.11%, ROE 4.31% — below industry standards
💹 Valuation Indicators
- P/E Ratio: 95.1 (far above industry PE of 25.0, highly overvalued)
- P/B Ratio: ~5.7 (premium valuation)
- PEG Ratio: -5.85 (negative, suggests weak growth outlook)
- Intrinsic Value: Current price ₹6,892 is expensive relative to fundamentals
🏢 Business Model & Competitive Advantage
- Engineering and manufacturing company with diversified product base
- Strong presence in automotive and industrial components
- High debt limits financial flexibility
- Dividend yield of 0.07% is negligible
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹6,200–₹6,600 range (only for high-risk investors)
- Long-Term Holding: Risky due to high valuation and weak return metrics
- Guidance: Suitable only for aggressive investors betting on turnaround
✅ Positive
- Quarterly PAT growth from ₹47.2 Cr to ₹58.4 Cr
- FII (+0.58%) and DII (+0.88%) holdings increased
- Strong industry presence in auto and engineering components
⚠️ Limitation
- Extremely high P/E ratio compared to industry
- Low ROE and ROCE indicate poor efficiency
- High debt-to-equity ratio (0.96) raises financial risk
📰 Company Negative News
- Stock trading below DMA 50 & DMA 200, showing weak momentum
- Negative PEG ratio highlights poor growth prospects
🌟 Company Positive News
- Quarterly PAT growth over 20% QoQ
- Institutional investors (FII & DII) increased holdings
🏦 Industry
- Engineering and auto component sector with cyclical demand
- Industry PE at 25.0, CRAFTSMAN trades far above this, showing overvaluation
- Sector growth tied to industrial and automotive expansion
🔎 Conclusion
- CRAFTSMAN shows strong revenue momentum but weak efficiency metrics
- Valuation is extremely stretched compared to industry peers
- Entry only advisable for high-risk investors near ₹6,200–₹6,600
- Best suited for speculative portfolios, not conservative long-term holdings