⚠ 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 - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | CRAFTSMAN | Market Cap | 18,309 Cr. | Current Price | 7,675 ₹ | High / Low | 8,069 ₹ |
| Stock P/E | 106 | Book Value | 1,206 ₹ | Dividend Yield | 0.07 % | ROCE | 8.11 % |
| ROE | 4.31 % | Face Value | 5.00 ₹ | DMA 50 | 7,326 ₹ | DMA 200 | 6,557 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | 0.88 % | PAT Qtr | 58.4 Cr. | PAT Prev Qtr | 47.2 Cr. |
| RSI | 50.7 | MACD | 21.2 | Volume | 95,424 | Avg Vol 1Wk | 85,495 |
| Low price | 3,700 ₹ | High price | 8,069 ₹ | PEG Ratio | -6.51 | Debt to equity | 0.96 |
| 52w Index | 91.0 % | Qtr Profit Var | 1,005 % | EPS | 71.6 ₹ | Industry PE | 28.1 |
📊 Craftsman Automation shows strong recent profit growth and momentum but faces high valuation, weak efficiency ratios, and leverage concerns. It is a moderate candidate for swing trading, best suited for short-term momentum plays.
✅ Optimal Entry Price: 7,400–7,500 ₹ (near 50 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 7,950–8,050 ₹ (close to recent high resistance) or if RSI moves above 60.
Positive
- 💡 EPS of 71.6 ₹ supports earnings strength.
- 📈 Quarterly PAT surged from 47.2 Cr. to 58.4 Cr. (+1,005%), showing strong recovery.
- 🏦 Increase in both FII (+0.58%) and DII (+0.88%) holdings reflects investor confidence.
- 📊 Current price above both 50 DMA (7,326 ₹) and 200 DMA (6,557 ₹), indicating bullish trend.
Limitation
- ⚠️ Extremely high P/E (106) compared to industry average (28.1), suggesting overvaluation.
- 📉 Low ROCE (8.11%) and ROE (4.31%) indicate weak efficiency.
- 🔻 Debt-to-equity ratio of 0.96 shows high leverage risk.
- 📊 Very low dividend yield (0.07%) reduces passive income appeal.
- 📉 PEG ratio (-6.51) indicates poor valuation relative to growth.
Company Negative News
- 📉 High debt levels may limit financial flexibility.
- 📊 Weak return ratios compared to peers despite strong profit growth.
Company Positive News
- 📈 Strong quarterly profit growth indicates operational improvement.
- 📊 Increased institutional holdings (FII and DII) show growing investor trust.
Industry
- 🏭 Industry P/E at 28.1 is far lower than Craftsman’s 106, highlighting premium valuation.
- 📈 Auto ancillary and engineering sector remains in demand, supported by industrial growth and manufacturing expansion.
Conclusion
🔎 Craftsman Automation is fundamentally overvalued but shows strong short-term momentum. Swing traders may enter near 7,400–7,500 ₹ and exit near 7,950–8,050 ₹. Caution is advised due to high leverage and weak efficiency ratios, making this more suitable for short-term trades rather than long-term holding.