Motilal Oswal's research report on Craftsman Automation
Craftsman Automation (CRAFTSMA) reported a weak 4QFY24, largely due to the subdued performance of the powertrain division, resulting in a lower Revenue/PAT of INR11.1b/INR0.62b (vs. est. of INR11.9b/ INR0.86b). However, aided by the strong order backlog in the Al and Industrial Engineering segments, we expect the company’s performance to improve over our forecast period.To factor in the near-term slowdown in CVs and tractors, we cut our FY25E/26E EPS by 6%/5%. We estimate a CAGR of 15%/17%/27% in consolidated revenue/EBITDA/PAT over FY24-26E, led by new order wins.
Outlook
Given its attractive valuation at 19x FY26E EPS, we reiterate our BUY rating with a TP of INR5,305 (valued at 23x FY26E EPS).
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