Buy Craftsman Automation; target of Rs 4750: Motilal Oswal

Motilal Oswal is bullish on Craftsman Automation recommended buy rating on the stock with a target price of Rs 4750 in its research report dated June 27, 2023.

Broker Research

June 28, 2023 / 12:49 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Craftsman Automation

CRAFTSMAN AUTOMATION (CRATFSMA)’s FY23 annual report highlights its initiatives to promote diversity in its business and reduce dependence on certain segments, which have started to reflect in further revenue diversification. The recent acquisition of DR Axion (DRA) has substantially enhanced the salience of PVs (to 30% from 7%) and reduced dependence on CVs (to 22% from 29%). More importantly, this has been achieved despite growing and winning orders in legacy businesses of CV powertrain. Further, CRAFTSMA started making inroads in the EV segment in both powertrain as well as aluminum divisions in FY23. With most of the order wins having started production (SoP) in late-FY23 or in FY24, the sustenance of growth visibility is high. We marginally raise our earnings estimates by ~1%/3% for FY24/25 to factor in the ramp-up in aluminum business.

Outlook

We also increase our target multiple to 20x from 18x to factor in the continued strong growth momentum as well as capital efficiencies. Reiterate BUY with a TP of INR4,750 (based on 20x Jun'25E consolidated EPS).

For all recommendations report, click here