⚠ 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 - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | CRAFTSMAN | Market Cap | 17,920 Cr. | Current Price | 7,512 ₹ | High / Low | 8,069 ₹ |
| Stock P/E | 104 | Book Value | 1,206 ₹ | Dividend Yield | 0.07 % | ROCE | 8.11 % |
| ROE | 4.31 % | Face Value | 5.00 ₹ | DMA 50 | 7,320 ₹ | DMA 200 | 6,547 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | 0.88 % | PAT Qtr | 58.4 Cr. | PAT Prev Qtr | 47.2 Cr. |
| RSI | 48.7 | MACD | 22.3 | Volume | 19,541 | Avg Vol 1Wk | 81,309 |
| Low price | 3,700 ₹ | High price | 8,069 ₹ | PEG Ratio | -6.37 | Debt to equity | 0.96 |
| 52w Index | 87.2 % | Qtr Profit Var | 1,005 % | EPS | 71.6 ₹ | Industry PE | 28.0 |
📊 Technical Analysis
- Chart Patterns: CRAFTSMAN is trading at 7,512 ₹, close to its recent high of 8,069 ₹, showing strong upward momentum but facing resistance near peak levels.
- Moving Averages: Current price is above both 50 DMA (7,320 ₹) and 200 DMA (6,547 ₹), indicating bullish strength in the medium term.
- RSI: At 48.7, the stock is neutral, suggesting balanced momentum without overbought or oversold signals.
- MACD: Positive (22.3), confirming bullish crossover and short-term strength.
- Bollinger Bands: Price is near the upper band, indicating strong momentum but risk of short-term pullback.
- Volume Trends: Current volume (19,541) is significantly lower than 1-week average (81,309), showing weak participation despite price strength.
📈 Momentum & Signals
- Short-Term Momentum: Bullish, but low volume suggests caution.
- Support Zones: 7,300–7,350 ₹ (near-term support), 6,900 ₹ (strong support).
- Resistance Zones: 7,800–8,000 ₹ (major resistance), 8,069 ₹ (recent high).
- Optimal Entry: Around 7,300–7,400 ₹ if support holds.
- Optimal Exit: 7,900–8,000 ₹ range, unless breakout above 8,069 ₹ confirms continuation.
- Trend Status: Currently trending upward but showing signs of consolidation due to weak volume.
✅ Positive
- Strong EPS (71.6 ₹) and recent PAT growth (58.4 Cr. vs 47.2 Cr.).
- Stock trading above both 50 DMA and 200 DMA confirms bullish technical strength.
- FII (+0.58%) and DII (+0.88%) holdings increased, showing institutional confidence.
- Quarterly profit variation (+1,005%) highlights strong earnings momentum.
⚠️ Limitation
- Extremely high P/E (104) compared to industry PE (28.0), suggesting overvaluation.
- PEG ratio (-6.37) indicates poor valuation relative to growth.
- Low ROCE (8.11%) and ROE (4.31%) show weak capital efficiency.
- High debt-to-equity (0.96) raises financial risk.
- Dividend yield (0.07%) is negligible, offering limited income support.
📉 Company Negative News
- High leverage with debt-to-equity ratio of 0.96.
- Valuation concerns due to P/E of 104, far above industry average.
📈 Company Positive News
- PAT improved significantly from 47.2 Cr. to 58.4 Cr.
- Institutional investors (FII & DII) increased holdings.
- Stock has delivered strong 52-week performance (+87.2%).
🏭 Industry
- Industry P/E is 28.0, much lower than CRAFTSMAN’s 104, highlighting relative overvaluation.
- Auto ancillary sector is cyclical but currently supported by demand recovery in manufacturing and exports.
📝 Conclusion
- CRAFTSMAN is technically bullish but fundamentally overvalued with weak efficiency ratios.
- Stock may continue upward momentum if volume improves and price sustains above 7,300 ₹.
- Best strategy: Enter near 7,300–7,400 ₹ and exit around 7,900–8,000 ₹ unless breakout above 8,069 ₹ confirms continuation.