Craftsman Automation Ltd. (CRAFTSMAN) AI Stock Analysis

• Market Cap: ₹174.45B
• Dividend Yield: 0.07%
• Average Volume (3M): 938.00
• Price to Earnings (P/E): 52.2
• Beta (1Y): 0.86
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹8,119.00 ▲(3.92% Upside)

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

Consistent revenue growth

Sustained top-line growth demonstrates successful program wins and customer adoption across cycles. Durable revenue expansion supports scale benefits, higher capacity utilization and long‑term margin recovery as production ramps, strengthening competitive positioning over months.

Healthy gross margins from precision manufacturing

Relatively high gross margins reflect design‑enabled, high‑precision manufacturing capability that creates technical barriers and pricing power. These operating strengths underpin repeatable B2B supply relationships and lasting margin support as volumes scale.

Balanced capital structure

Moderate leverage and a reasonable equity base provide financial flexibility for capex or program qualification investments without excessive debt strain, supporting multi‑year supply contracts and resilience through industry cycles over the medium term.

Negative Factors

Negative free cash flow

Persistent negative FCF constrains the ability to self‑fund new program ramps, repay debt or return capital, increasing reliance on external financing. Over a 2–6 month horizon this limits strategic options and makes execution on growth initiatives more fragile.

Low net margin and margin pressure

Thin net margins and recent margin compression reduce internal cash generation and buffer for cyclical downturns. Lower profitability limits reinvestment capacity and heightens sensitivity to cost inflation or pricing pressure across automotive and industrial end markets.

Dependence on program wins and auto volumes

Revenue reliance on program nominations and OEM production volumes concentrates business risk: award cycles and auto demand swings drive multi‑year revenue variability. This structural dependence increases execution risk and makes growth lumpy over medium‑term planning horizons.

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 generates revenue primarily through the manufacturing and sale of precision-engineered components and assemblies for the automotive sector, which constitutes a significant portion of its business. The company also earns income from its operations in industrial equipment and consumer goods, providing tailored solutions and products to meet specific client requirements. Key revenue streams include contracts with major automotive manufacturers, ongoing partnerships for long-term supply agreements, and the provision of engineering services. Additionally, Craftsman Automation benefits from its focus on research and development, enabling it to innovate and expand its product offerings, thereby attracting new clients and increasing sales.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.23B	56.45B	44.21B	31.83B	21.94B	15.36B
Gross Profit	27.49B	7.67B	13.05B	15.53B	7.87B	6.19B
EBITDA	8.90B	8.33B	8.93B	6.80B	5.36B	4.48B
Net Income	2.11B	1.95B	3.04B	2.48B	1.63B	973.60M
Balance Sheet
Total Assets	0.00	71.16B	47.06B	38.07B	26.75B	23.52B
Cash, Cash Equivalents and Short-Term Investments	1.10B	981.40M	641.50M	273.30M	297.10M	351.50M
Total Debt	0.00	23.66B	17.55B	12.40B	8.00B	8.06B
Total Liabilities	-28.57B	42.60B	29.54B	23.69B	15.39B	13.82B
Stockholders Equity	28.57B	28.57B	16.58B	13.77B	11.36B	9.69B
Cash Flow
Free Cash Flow	0.00	-7.08B	-1.16B	2.62B	1.14B	2.63B
Operating Cash Flow	0.00	2.83B	5.13B	6.08B	3.27B	3.62B
Investing Cash Flow	0.00	-16.68B	-6.26B	-7.08B	-2.09B	-948.90M
Financing Cash Flow	0.00	13.93B	1.48B	730.40M	-1.20B	-2.96B

Craftsman Automation Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CRAFTSMAN, the sentiment is Neutral. The current price of 7812.6 is above the 20-day moving average (MA) of 7607.57, above the 50-day MA of 7306.35, and above the 200-day MA of 6419.48, indicating a neutral trend. The MACD of 12.99 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	₹158.59B	19.61	―	1.77%	0.32%	-0.32%
CEATLTD	69 Neutral	₹152.10B	27.47	―	0.77%	12.61%	-12.56%
MINDACORP	69 Neutral	₹134.35B	49.72	―	0.23%	12.99%	2.43%
GABRIEL	64 Neutral	₹134.31B	52.57	―	0.46%	17.87%	21.19%
JBMA	64 Neutral	₹133.19B	63.16	―	0.15%	7.63%	11.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CRAFTSMAN	59 Neutral	₹174.45B	52.18	―	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.

Craftsman Automation Announces Resignation of CTO Ajay Battu

Craftsman Automation Limited announced the resignation of Mr. Ajay Battu, the Chief Technical Officer for Aluminium Products and Senior Management Personnel, effective from November 27, 2025, due to personal reasons. This change in senior management could impact the company’s operations and strategic direction in the aluminum products sector, potentially affecting stakeholders and market positioning.