Craftsman Automation Ltd. (CRAFTSMAN) AI Stock Analysis

• Market Cap: ₹159.34B
• Dividend Yield: 0.07%
• Average Volume (3M): 938.00
• Price to Earnings (P/E): 42.8
• Beta (1Y): 1.09
• Revenue Growth: 54.58%
• EPS Growth: -12.30%
• Country: IN
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 46.30
• Shares Outstanding: 23,855,583
• 10 Day Avg. Volume: 1,220
• 30 Day Avg. Volume: 938
• PEG Ratio: -1.36
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.96
• P/FCF Ratio: -15.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 163
• Revenue Forecast (FY): ₹78.69B

• Rating: 59 Neutral
• Price Target: ₹7,671.00 ▼(-1.81% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Craftsman Automation's stock score is primarily influenced by solid financial performance, though cash flow management needs improvement. Technical indicators suggest a neutral to slightly bearish trend. The high P/E ratio indicates overvaluation, and the low dividend yield offers limited income potential.

Positive Factors

Revenue Growth Momentum

Craftsman shows sustained top-line expansion, with strong reported revenue growth metrics. As a supplier to OEMs, sustained program wins and recurring production orders can translate this growth into multi-year revenue streams and improved capacity utilization, supporting durable scale and operating leverage.

Healthy Gross Margin from Precision Manufacturing

A ~31.7% gross margin indicates the company captures value from design-enabled, high-precision manufacturing. This margin base, supported by machining, casting and assembly capabilities, provides structural profitability as long as product mix and process quality remain, enabling reinvestment in automation and premium contracts.

Balanced Capital Structure

Leverage near 0.8 and a ~40% equity ratio reflect a controlled capital structure that supports ongoing capex and program qualification without excessive financial strain. This balance helps preserve credit access and resilience across automotive cycles while allowing targeted investment to sustain long-term manufacturing competitiveness.

Negative Factors

Negative Free Cash Flow

Despite earnings converting to cash above net income, negative free cash flow indicates capex or working capital demands outpacing cash generation. Persisting FCF deficits constrain the company's ability to self-fund program ramp-ups, repay debt, or build reserves, increasing reliance on external financing over the medium term.

Thin Net Margins and Margin Pressure

A low net margin around 3.4% with slipping operating margins leaves limited buffer for input cost swings, warranty or quality issues, and pricing pressure from OEMs. Structural margin tightness reduces capital available for R&D or automation investments and heightens vulnerability to sustained cost inflation in the supply chain.

Automotive Concentration and Program Dependence

Heavy reliance on automotive OEM programs ties revenues to platform cycles and award decisions. This structural concentration makes long-term performance sensitive to program losses, production cutbacks, or OEM re-shoring, increasing revenue volatility and requiring continual investment to win and retain multi-year contracts.

Craftsman Automation Ltd. Business Overview & Revenue Model

Company Description

Craftsman Automation Limited operates as an engineering company in India. It operates through three segments: Automotive Powertrain, Automotive Aluminium, and Industrial & Engineering. The Automotive Powertrain segment provides cylinder blocks and cylinder heads, camshafts, transmission parts, gear box housings, turbo charges, and bearing caps. This segment serves original equipment manufacturers producing commercial vehicles, special utility vehicles, tractors, and off-highway vehicles. The Automotive Aluminium segment offers crank case and cylinder blocks for two wheelers, engine and structural parts for passenger vehicles, and gear box housings for heavy commercial vehicle. 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, and aluminium castings for power transmission. The company also exports its products. Craftsman Automation Limited was incorporated in 1986 and is headquartered in Coimbatore, India.

How the Company Makes Money

CRAFTSMAN primarily makes money by selling manufactured precision components and sub-assemblies to OEMs and large industrial customers under business-to-business supply arrangements. Key revenue streams typically include: (1) Automotive manufacturing revenue: recurring production orders for vehicle-related components and assemblies supplied directly to automotive OEMs and/or Tier-1 suppliers, where revenues scale with customer production volumes and awarded programs/platforms over multi-year cycles. (2) Industrial/non-automotive manufacturing revenue: sales of precision parts and assemblies for selected industrial end-markets, which can diversify demand away from purely automotive cycles. In general, the company’s earnings are driven by (a) program wins and long-term supply contracts/nomination for specific components, (b) the ability to manufacture at required quality, tolerances, and cost, enabling repeat orders and high customer retention, and (c) operating leverage from high utilization of manufacturing capacity once volumes ramp up. Specific information on named partnerships, customer-wise revenue concentration, and exact segment-wise revenue contribution is null.

Craftsman Automation Ltd. Financial Statement Overview

Summary

Craftsman Automation shows solid revenue growth and moderate profitability. The balance sheet is stable with controlled debt, but asset optimization could enhance returns. Cash flow management, particularly Free Cash Flow, needs improvement to support sustainable growth.

Income Statement

Craftsman Automation has shown consistent revenue growth over the years, with a notable increase of 28.73% in the latest year. Gross Profit Margin stands at 31.72% and Net Profit Margin at 3.42%, indicating moderate profitability. Although the EBIT and EBITDA margins have slightly decreased recently, overall margins remain stable, supporting a healthy income statement.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.83, reflecting a balanced capital structure. Return on Equity (ROE) is at 6.81%, suggesting satisfactory returns for shareholders. With an Equity Ratio of 40.14%, the company maintains a reasonable level of equity financing, although there is room for improving asset efficiency and reducing liabilities.

Cash Flow

Craftsman Automation faces challenges with Free Cash Flow, which has been negative recently. The Operating Cash Flow to Net Income Ratio is 1.46, indicating effective conversion of earnings into cash, but the negative Free Cash Flow limits financial flexibility. Improvement in cash management and expenditure control is needed to enhance cash flow health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	71.11B	56.45B	44.21B	31.83B	21.94B	15.36B
Gross Profit	32.76B	7.67B	13.05B	15.53B	7.87B	6.19B
EBITDA	10.02B	8.33B	8.93B	6.80B	5.36B	4.48B
Net Income	2.40B	1.95B	3.04B	2.48B	1.63B	973.60M
Balance Sheet
Total Assets	82.66B	71.16B	47.06B	38.07B	26.75B	23.52B
Cash, Cash Equivalents and Short-Term Investments	1.90B	981.40M	641.50M	273.30M	297.10M	351.50M
Total Debt	33.11B	23.66B	17.55B	12.40B	8.00B	8.06B
Total Liabilities	52.36B	42.60B	29.54B	23.69B	15.39B	13.82B
Stockholders Equity	30.30B	28.57B	16.58B	13.77B	11.36B	9.69B
Cash Flow
Free Cash Flow	-6.95B	-7.08B	-1.16B	2.62B	1.14B	2.63B
Operating Cash Flow	-1.26B	2.83B	5.13B	6.08B	3.27B	3.62B
Investing Cash Flow	-5.69B	-16.68B	-6.26B	-7.08B	-2.09B	-948.90M
Financing Cash Flow	7.38B	13.93B	1.48B	730.40M	-1.20B	-2.96B

Craftsman Automation Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7812.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CRAFTSMAN, the sentiment is Negative. The current price of 7812.6 is above the 20-day moving average (MA) of 7618.16, above the 50-day MA of 7666.67, and above the 200-day MA of 6786.80, indicating a bearish trend. The MACD of -150.54 indicates Positive momentum. The RSI at 29.95 is Positive, neither overbought nor oversold. The STOCH value of 20.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CRAFTSMAN.

Craftsman Automation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIEINDIA	74 Outperform	₹166.56B	19.45	―	1.77%	0.32%	-0.32%
MINDACORP	69 Neutral	₹114.77B	39.41	―	0.23%	12.99%	2.43%
CEATLTD	64 Neutral	₹140.05B	24.70	―	0.77%	12.61%	-12.56%
GABRIEL	64 Neutral	₹121.17B	66.34	―	0.46%	17.87%	21.19%
JBMA	64 Neutral	₹117.01B	67.30	―	0.15%	7.63%	11.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CRAFTSMAN	59 Neutral	₹159.34B	42.81	―	0.07%	54.58%	-12.30%

Craftsman Automation Ltd. Corporate Events

Craftsman Automation Faces Upheld GST Demand and Penalty, Plans to Appeal

Craftsman Automation Limited has disclosed that the Commissioner (Appeals), Gurugram has upheld a goods and services tax (GST) demand of Rs 962.89 lakh along with an equal amount of penalty, arising from a dispute over the valuation of consideration for certain services and related processes during the period 2017-18 to 2023-24. The company, which maintains it has consistently complied with applicable GST requirements, plans to challenge the order in a higher forum and has stated that it does not expect any material impact on its financials, operations or other activities from this development, suggesting limited immediate risk for stakeholders despite the sizeable tax and penalty exposure.

Craftsman Automation Files SEBI Dematerialisation Compliance Certificate for December Quarter

Craftsman Automation Limited has submitted to the depositories and stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, as issued by its registrar and share transfer agent, MUFG Intime India Private Limited. The registrar confirmed that all securities received for dematerialisation during the quarter were duly processed, either accepted or rejected within prescribed timelines, listed in line with existing securities, and that corresponding physical certificates were cancelled and records updated, underscoring the company’s adherence to regulatory requirements and robust shareholder record-keeping.

Craftsman Automation Subsidiary Completes Acquisition of Suprash Developers and Srikara Technologies

Craftsman Automation Limited has announced that its wholly owned subsidiary, DR Axion India Private Limited, has completed the acquisition of 100% of the equity share capital of Suprash Developers Private Limited, together with Suprash’s wholly owned subsidiary, Srikara Technologies Private Limited. The transaction, previously disclosed upon execution of the share purchase agreement, consolidates Craftsman Automation’s control over these entities and may enhance its operational capabilities and technology portfolio through the integration of Suprash and Srikara into its existing subsidiary structure.

Craftsman Automation to Engage with Investors at Auto Ancillaries Conference

Craftsman Automation Limited announced its participation in the Auto Ancillaries Conference organized by DAM Capital on December 17, 2025. This engagement reflects the company’s active involvement in industry events, potentially enhancing its visibility and strengthening relationships with institutional investors and analysts.