Craftsman's Q2 FY26 consolidated PAT of Rs 912 million was ahead of the brokerage's estimate of Rs 863 million, aided by better-than-expected revenue growth, especially in the aluminum segment.
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Motilal Oswal Report
Craftsman Automation Ltd.'s aluminum business is likely to be a key growth driver going forward on the back of the ramp-up of its alloy wheel facilities in Bhiwadi and Hosur, steady order visibility from both domestic and export customers, and benefits of the Sunbeam restructuring to be visible from FY27E.
However, powertrain margins are likely to remain under pressure at least in the near term as Craftsman looks to develop products for data center applications, which are significantly highgestation projects (three-four years for SOP).
After the recent run-up in the stock, most of the positives seem factored in at 42.7x FY26E and at 29.1x FY27E consolidated earnings per share.
We maintain Neutral with a target price of Rs 6,542 (valued at 24x Sep'27E EPS).
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