CRAFTSMAN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.1

📊 Chart Patterns: CRAFTSMAN is trading above both its 50 DMA (6,871 ₹) and 200 DMA (6,222 ₹), showing strong bullish alignment. Current price (7,045 ₹) is close to its 52-week high (7,378 ₹), reflecting strong momentum and trend continuation.

📈 Moving Averages: Price > 50 DMA > 200 DMA → bullish structure. Sustaining above 6,871 ₹ confirms strength; 6,222 ₹ acts as medium-term support.

📈 RSI: At 55.6, RSI is neutral-to-bullish, suggesting healthy momentum without being overbought.

📈 MACD: Strongly positive (60.9), confirming bullish crossover and strong upward momentum.

📊 Bollinger Bands: Price near upper band, indicating strong trend continuation but with potential for minor pullbacks.

📊 Volume Trends: Current volume (19,548) is below 1-week average (25,062), showing reduced participation, but price strength remains intact.

📍 Support & Resistance:

- Strong support: 6,870–6,900 ₹ (50 DMA)

- Major support: 6,222 ₹ (200 DMA)

- Immediate resistance: 7,200–7,250 ₹

- Major resistance: 7,378 ₹ (52-week high)

🚦 Momentum Signals: Short-term momentum is bullish. Entry zone: 6,950–7,050 ₹ near support. Exit zone: 7,200–7,300 ₹ if resistance is tested. Breakout above 7,378 ₹ would confirm continuation of uptrend toward 7,500–7,600 ₹.

📈 Trend Status: The stock is trending upward with strong bullish bias, supported by positive MACD and moving average alignment.

Positive

• Stock trading above both 50 DMA and 200 DMA, showing strong technical strength.
• MACD strongly positive, confirming bullish momentum.
• Quarterly PAT growth (+65%) indicates strong earnings momentum.
• DII holdings increased (+1.70%), showing domestic institutional support.
• EPS of 50.2 ₹ supports valuation comfort.

Limitation

• Extremely high P/E (140) compared to industry PE (30), showing severe overvaluation.
• ROCE (8.11%) and ROE (4.31%) are weak compared to peers.
• PEG ratio (-8.63) suggests poor valuation relative to growth prospects.
• Dividend yield of 0.07% is negligible.
• Debt-to-equity ratio of 0.96 indicates moderate leverage risk.

Company Negative News

• FII holdings declined (-0.39%), showing reduced foreign investor confidence.
• Valuation concerns due to extremely high P/E and weak return ratios.

Company Positive News

• DII holdings increased (+1.70%), reflecting strong domestic institutional confidence.
• Quarterly PAT improved to 47.2 Cr. from 39.7 Cr., showing robust performance.

Industry

• Industry PE at 30 is far lower than CRAFTSMAN’s PE (140), showing sector trades at more reasonable valuations.
• Auto ancillary and engineering sector benefits from industrial demand but faces cyclical risks.

Conclusion

⚖️ CRAFTSMAN is trending upward with strong bullish bias, trading above key moving averages and supported by earnings growth. Entry near 6,950–7,050 ₹ could be considered for short-term gains, with exit around 7,200–7,300 ₹. A breakout above 7,378 ₹ would confirm continuation of the uptrend. Strong fundamentals and institutional support provide stability, but extreme overvaluation, weak return ratios, and modest dividend yield remain concerns for long-term investors.