Craftsman Automation
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Craftsman Automation is positioned for growth, driven by strong performance in its aluminum and powertrain segments, as highlighted by management's optimistic outlook during recent earnings calls. The company is capitalizing on a structural manufacturing capex cycle in India, which is expected to enhance its market share and revenue growth. However, challenges such as raw material cost volatility and high stock valuations remain pertinent. Vista's financial outlook reflects a moderate revenue growth trajectory, with stable margins anticipated, aligning with the company's strategic focus on high-value segments and operational efficiencies. The expected EBITDA CAGR of 25% through FY28 underscores the potential for significant upside, supported by a robust order pipeline and new facility commissioning. Industry dynamics, including competitive pricing pressures and a favorable macro environment for Indian equities, further bolster this outlook. Over the next 12-24 months, key opportunities include the successful integration of recent acquisitions and capacity expansions, while watchpoints involve execution risks and geopolitical factors affecting commodity prices
Why We Like This Stock
- Strong growth potential in the aluminum segment, supported by robust export demand and strategic capacity expansions
- Management's focus on operational efficiencies and integration of recent acquisitions is expected to drive EBITDA growth
- Favorable macroeconomic conditions and a structural capex cycle in India provide a conducive environment for revenue growth
Things To Watch Out For
- Volatility in raw material costs, particularly in aluminum, poses risks to margin stability
- High stock valuations may limit upside potential and affect investor sentiment
- Execution risks related to the integration of acquisitions and commissioning of new facilities could impact operational performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,452 | 5,690 | 8,069 | 9,057 | 10,784 |
| Profit Before Tax (Cr.) | 444 | 296 | 547 | 728 | 864 |
| PBT Margin | 10.0% | 5.2% | 6.8% | 8.0% | 8.0% |
| Net Profit (Cr.) | 326 | 211 | 409 | 545 | 647 |
| Earnings Per Share | 112.1 | 78.3 | 156.5 | 208.3 | 247.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ► Add | 10,900 | 31-Jul-2026 |
| Motilal Oswal | ► Neutral | 9,699 | 31-Jul-2026 |
| Goldman Sachs | ▲ Buy | 11,600 | 20-Jul-2026 |
Company Overview
Show Company Profile
Craftsman Automation Limited operates as an engineering company in India. It operates through Powertrain, Aluminium Products, and Industrial & Engineering segments. The Powertrain segment manufactures engine parts, including cylinder blocks and cylinder heads, camshafts, transmission parts, gear box housings, turbo charges, and bearing caps. The Aluminium Products segment offers crank case and cylinder blocks for two wheelers, and engine and structural parts for passenger vehicles; gear box housings for heavy commercial vehicle; and aluminium casting products for power transmission applications. The Industrial & Engineering segment provides stationary racking for warehouses, V-stores, roll form products, and automated storage and retrieval systems; and SPM and material handling products, gears and gear boxes, tool rooms, mould bases, and sheet metals. The company offers metal and metal products; electricals or electronic machinery, railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, and mechanical appliances; machining services; trades in marine engines, and hoists and cranes; and cast-iron products for stationary engines. It serves commercial vehicles, special utility vehicles, tractors, off-highway vehicles, two-wheelers, passenger vehicles, power transmission and distribution, automotive, foundries, railways, textile and printing machines, industrial engineering, fast moving consumer goods, e-commerce, food and beverages, logistics, pharmaceuticals, and electronics sectors. The company also exports its products. Craftsman Automation Limited was incorporated in 1986 and is based in Coimbatore, India.