Buy Craftsman Automation; target of Rs 5082: LKP Research

LKP Research is bullish on Craftsman Automation has recommended buy rating on the stock with a target price of Rs 5082 in its research report dated April 30, 2024.

Broker Research

May 02, 2024 / 12:42 IST

Buy

26 Aug, 2025 12:21

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LKP Research's research report on Craftsman Automation

Craftsman Automation Ltd (CAL) reported consol revenues of ₹11 bn v/s ₹9.8 bn, a growth of 13% yoy and a fall of 2.2% qoq. The results were subdued due to weak performance by the Powertrain business. EBITDA increased by 10% yoy and fell by 6% qoq. Margins declined by 80 bps qoq and 50 bps yoy on weak margins at Powertrain business and Industrial segment. PAT declined by 12%/13.6% yoy and qoq respectively due to underperformance at the operating level. In FY24, revenues/EBITDA/PAT grew by 40%/29%/34% respectively.

Outlook

We estimate the consolidated revenues/EBITDA/PAT to grow at a CAGR of 21%/21%/25% in the period between FY23-26E. We therefore reiterate a BUY on the stock its attractive valuations (19.2x FY 26E earnings). We value the stock at 22x with a target price of ₹5,055.

For all recommendations report, click here