CRAFTSMAN - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.3

📊 Analysis Summary

Craftsman Automation (CRAFTSMAN) is currently in a strong uptrend, supported by high momentum indicators and robust quarterly profit growth. While valuation is stretched and debt levels are relatively high, the stock’s technical strength and volume surge make it a good candidate for a short-term swing trade, especially on minor pullbacks.

🔍 Technical Indicators

RSI (67.0): Bullish — nearing overbought, but still has room to rise.

MACD (+224): Strongly positive — confirms powerful upward momentum.

Price vs DMA

Current Price (₹6,448) is well above 50 DMA (₹5,773) and 200 DMA (₹5,236) — strong bullish trend.

Volume: Nearly 3× weekly average — strong buying interest.

📈 Fundamental Snapshot

P/E (66.8) vs Industry PE (31.2): Highly overvalued — priced aggressively.

PEG Ratio (7.10): Elevated — growth may not justify valuation.

ROE (9.41%) & ROCE (11.7%): Moderate — not standout.

EPS (₹88.4) vs Price (₹6,448): Valuation looks stretched.

Qtr Profit Growth (+42.1%): Strong — earnings momentum is solid.

FII Holding ↑ (+0.19%): Mild institutional buying.

DII Holding ↓ (-0.05%): Slight domestic trimming.

Debt to Equity (0.83): Relatively high — watch leverage.

Dividend Yield (0.08%): Minimal — not a factor for swing trading.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹6,300–₹6,350 range, on minor pullbacks.

Enter when RSI dips below 65 and MACD remains positive.

Confirm with continued volume strength and price holding above 50 DMA.

🚪 Exit Strategy (If Already Holding)

Exit near ₹6,950–₹7,100, close to recent high and resistance zone.

If price drops below ₹6,200, consider stop-loss at ₹6,100 to protect gains.

⚖️ Final Verdict

CRAFTSMAN is a technically strong, momentum-driven stock with solid earnings growth. Despite high valuation and leverage, it presents a high-reward swing trade opportunity if managed with disciplined entry and exit points. Best suited for traders comfortable with elevated volatility.

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