CRAFTSMAN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | CRAFTSMAN | Market Cap | 23,246 Cr. | Current Price | 9,742 ₹ | High / Low | 9,938 ₹ |
| Stock P/E | 104 | Book Value | 1,262 ₹ | Dividend Yield | 0.11 % | ROCE | 10.3 % |
| ROE | 7.70 % | Face Value | 5.00 ₹ | DMA 50 | 8,546 ₹ | DMA 200 | 7,487 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 3.04 % | PAT Qtr | 78.3 Cr. | PAT Prev Qtr | 58.4 Cr. |
| RSI | 72.1 | MACD | 315 | Volume | 3,06,875 | Avg Vol 1Wk | 1,44,069 |
| Low price | 5,100 ₹ | High price | 9,938 ₹ | PEG Ratio | -52.5 | Debt to equity | 0.98 |
| 52w Index | 95.9 % | Qtr Profit Var | 185 % | EPS | 92.8 ₹ | Industry PE | 28.0 |
Craftsman Automation shows strong price momentum with RSI above 70 and MACD positive, supported by significant volume growth. However, fundamentals reveal concerns: extremely high P/E ratio, weak ROCE and ROE, high debt-to-equity, and negative PEG ratio. While quarterly profits surged, valuations appear stretched. This makes it a high-risk candidate for swing trading, suitable only for short-term momentum plays.
💡 Optimal Entry Price: Around 9,400–9,600 ₹ (near breakout levels).
📈 Exit Strategy: If already holding, consider booking profits near 9,900–10,000 ₹ (recent highs) or exit if price falls below 9,200 ₹ (support zone).
✅ Positive
- 📈 Strong price momentum with RSI at 72.1 and positive MACD.
- 📊 PAT growth from 58.4 Cr. to 78.3 Cr. (+185% quarterly variation).
- 📉 Price trading well above DMA 50 and DMA 200, confirming bullish trend.
- 📈 EPS at 92.8 ₹ provides a strong earnings base.
⚠️ Limitation
- 📉 Extremely high P/E ratio of 104 compared to industry average of 28.
- 📉 Weak ROCE at 10.3% and ROE at 7.7% indicate poor efficiency.
- 📉 High debt-to-equity ratio of 0.98 raises financial risk.
- 📉 Negative PEG ratio (-52.5) suggests unsustainable valuation relative to growth.
📰 Company Negative News
- 📉 Decline in FII holding (-0.83%) shows reduced foreign investor confidence.
- 📉 Dividend yield at 0.11% is negligible, limiting income appeal.
🌟 Company Positive News
- 📈 Increase in DII holding (+3.04%) signals strong domestic institutional support.
- 📊 Significant quarterly profit growth (+185%) boosts short-term sentiment.
🏭 Industry
- 📊 Industry P/E at 28, far lower than Craftsman’s 104, suggesting sector is moderately valued while the stock is overvalued.
- 📈 Auto ancillary industry benefits from cyclical demand recovery but faces margin pressures.
📌 Conclusion
Craftsman Automation is a momentum-driven swing trade candidate with strong short-term technicals but weak fundamentals and stretched valuations. Entry is favorable near 9,400–9,600 ₹, with profit booking advised around 9,900–10,000 ₹. Risk management is critical due to high debt and overvaluation.