Craftsman Automation Ltd. is a versatile engineering company that caters to the automotive and industrial OEMs. With a strong presence in various segments, the automotive sector contributes to 73% of their total revenue.
Craftsman Automation holds the title of being the largest player in India when it comes to machining cylinder blocks and cylinder heads in the M&HCV and construction equipment industries.
Their product lines are neatly categorized into three divisions: automotive power-train, automotive aluminium, and industrial & engineering. The company is headquartered in Coimbatore, Tamil Nadu, and operates 12 plants across India.
Product Offerings:
Automotive – Powertrain and Others: The range of products available encompasses various engine components, including cylinder blocks, cylinder heads, camshafts, transmission parts, gearbox housings, turbochargers, and bearing caps.
Automotive – Aluminium Products: The offerings consist of crankcases and cylinder blocks for two-wheelers, engine and structural parts for passenger vehicles, and gearbox housings for heavy commercial vehicles.
Industrial and Engineering: This segment can be further divided into two sub-segments. The first sub-segment focuses on storage solutions, providing comprehensive options for both conventional and automated storage systems. The second sub-segment specializes in high-end precision products, manufacturing aluminum products and offering services such as sub-assembly, material handling equipment, metal cutting, non-metal applications (such as washing and leak testing solutions), as well as tool room, mold base, and sheet metal capabilities.
Craftsman Automation Limited Advantages :
- An engineering company with a wide range of capabilities in manufacturing and a commitment to delivering complete solutions while producing top-notch, complex products, components, and parts.
- Impressive internal capabilities for both process and product design.
- Strong, enduring partnerships with key OEMs both locally and internationally.
- Wide-reaching manufacturing presence, with facilities strategically positioned to adjust capacity and product variety as needed.
- Seasoned management team backed by a dedicated and talented workforce.
- Strong financial track record.
In Current dip stock seems to be undervalued now. (not a recommendation).
4000-4200 seems to be buying area
Craftsman Automation is currently being traded at an appealing valuation, boasting a 3.6 Enterprise value to Capital Employed ratio and a PEG (Price/Earnings to Growth) ratio of 0.7. These figures strongly suggest that the stock is undervalued when compared to its historical valuations.
Furthermore, one of the company’s notable strengths lies in its high institutional holdings, which currently stand at 29.74%. This signifies that institutional investors, who possess superior resources and capabilities to analyze company fundamentals, have demonstrated their confidence in Craftsman Automation.
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