CRAFTSMAN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | CRAFTSMAN | Market Cap | 20,848 Cr. | Current Price | 8,733 ₹ | High / Low | 9,750 ₹ |
| Stock P/E | 93.2 | Book Value | 1,262 ₹ | Dividend Yield | 0.13 % | ROCE | 10.3 % |
| ROE | 7.70 % | Face Value | 5.00 ₹ | DMA 50 | 7,979 ₹ | DMA 200 | 7,199 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 3.04 % | PAT Qtr | 78.3 Cr. | PAT Prev Qtr | 58.4 Cr. |
| RSI | 66.1 | MACD | 274 | Volume | 46,407 | Avg Vol 1Wk | 43,937 |
| Low price | 5,100 ₹ | High price | 9,750 ₹ | PEG Ratio | -47.1 | Debt to equity | 0.98 |
| 52w Index | 78.1 % | Qtr Profit Var | 185 % | EPS | 92.8 ₹ | Industry PE | 28.1 |
📈 Chart & Trend Analysis: CRAFTSMAN is trading at ₹8,733, well above its 50 DMA (₹7,979) and 200 DMA (₹7,199), confirming strong bullish momentum. RSI at 66.1 indicates overbought conditions, suggesting caution. MACD at 274 highlights powerful upward momentum. Bollinger Bands show price near the upper band, signaling potential volatility and profit-taking risk.
🔎 Momentum Signals: Current volume (46.4K) is slightly above the 1-week average (43.9K), showing active participation. Short-term momentum remains strong, but resistance near ₹9,000–₹9,100 could cap upside.
🎯 Entry Zone: ₹8,600–₹8,700 (support near 50 DMA)
🚪 Exit Zone: ₹9,000–₹9,100 (resistance zone)
🛑 Stop-Loss: ₹8,450 (below recent support)
📊 Trend Status: Strongly trending upward; possible consolidation if RSI remains elevated and profit-taking emerges.
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish trend.
- MACD positive (274) indicates strong momentum.
- Quarterly PAT growth (₹78.3 Cr vs ₹58.4 Cr) shows earnings improvement.
- DII holdings increased (+3.04%), reflecting domestic institutional confidence.
- Stock near 52-week high (₹9,750) highlights strong market sentiment.
Limitation
- Extremely high P/E ratio (93.2) compared to industry average (28.1) signals overvaluation risk.
- Low ROCE (10.3%) and ROE (7.70%) indicate weak efficiency.
- High debt-to-equity ratio (0.98) adds financial risk.
- Negative PEG ratio (-47.1) suggests poor growth valuation metrics.
Company Negative News
- Decline in FII holding (-0.83%) shows reduced foreign investor confidence.
- Weak return ratios despite rising profits.
Company Positive News
- Quarterly profits surged significantly (+185% variation).
- Strong trading volumes above weekly average.
Industry
- Industry P/E at 28.1 is much lower than CRAFTSMAN’s 93.2, highlighting valuation gap.
- Auto ancillary sector remains cyclical but supported by manufacturing demand.
Conclusion
⚡ CRAFTSMAN is a high-risk swing trade candidate with strong technical momentum but weak fundamentals. Optimal buy zone is ₹8,600–₹8,700 with profit exit levels between ₹9,000–₹9,100. Stop-loss should be maintained at ₹8,450 to manage downside risk. Momentum favors short-term gains, but stretched valuations and weak efficiency warrant disciplined risk management.
Would you like me to extend this into a sector overlay comparison with peers in auto ancillaries, or keep it focused as a single CRAFTSMAN swing trade report?