CRAFTSMAN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | CRAFTSMAN | Market Cap | 16,338 Cr. | Current Price | 6,855 ₹ | High / Low | 8,220 ₹ |
| Stock P/E | 94.5 | Book Value | 1,206 ₹ | Dividend Yield | 0.07 % | ROCE | 8.11 % |
| ROE | 4.31 % | Face Value | 5.00 ₹ | DMA 50 | 7,426 ₹ | 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 | 36.0 | MACD | -226 | Volume | 25,534 | Avg Vol 1Wk | 76,339 |
| Low price | 3,700 ₹ | High price | 8,220 ₹ | PEG Ratio | -5.81 | Debt to equity | 0.96 |
| 52w Index | 69.8 % | Qtr Profit Var | 1,005 % | EPS | 71.6 ₹ | Industry PE | 23.7 |
📊 Craftsman Automation (CRAFTSMAN) shows weak fundamentals with very high P/E (94.5), low ROCE (8.11%), and low ROE (4.31%). Technical indicators (RSI 36, MACD -226, price below 50 DMA) also suggest bearish momentum. Despite a sharp quarterly profit jump, the overall risk profile makes it a poor candidate for swing trading unless entered cautiously near support.
💡 Optimal Entry Price: Around ₹6,700–6,800, close to 200 DMA support.
📈 Exit Strategy (if already holding): Consider exiting near ₹7,400–7,500 if recovery occurs, or cut losses if price falls below ₹6,600 decisively.
Positive
- Quarterly PAT rose sharply from ₹47.2 Cr. to ₹58.4 Cr. (+1,005% variation).
- EPS of ₹71.6 shows earnings growth potential.
- FII (+0.58%) and DII (+0.88%) holdings increased, reflecting investor interest.
- Strong 52-week performance (+69.8%) indicates past momentum.
Limitation
- Extremely high P/E (94.5) compared to industry average (23.7), suggesting overvaluation.
- Low ROCE (8.11%) and ROE (4.31%) show weak capital efficiency.
- Debt-to-equity ratio of 0.96 indicates high leverage.
- Dividend yield of 0.07% is negligible.
- Price trading below 50 DMA (7,426), confirming bearish trend.
Company Negative News
- High debt levels raise financial risk.
- Technical weakness with RSI near oversold zone and MACD deeply negative.
Company Positive News
- Strong quarterly profit growth signals operational improvement.
- Institutional investors (FII & DII) increased holdings, showing confidence.
Industry
- Industry P/E at 23.7 is far lower than Craftsman’s, suggesting the stock trades at a steep premium.
- Automotive and engineering sector remains cyclical, influenced by demand recovery and industrial growth.
Conclusion
⚖️ Craftsman Automation is overvalued and technically weak, with high debt and poor efficiency ratios. While recent profit growth and institutional interest are positives, swing traders should be cautious. Entry near support (~₹6,700–6,800) with exit near resistance (~₹7,400–7,500) is advisable, but risk management is critical given the volatility.