Synopsis: Auto ancillary is drawing investor attention following a planned promoter stake sale through a market transaction, with participants closely monitoring the development and its potential impact on market sentiment.
The shares of this small cap company majorly engaged in manufacturing several components, sub-assemblies on a supply, job-work basis according to client specifications in the automotive, industrial, and engineering segments were in focus after the promoter expected to sell the stake.
With the market capitalization of Rs. 24,902 Crores, the shares of Craftsman Automation Ltd were trading at around Rs. 9521 per share which is just 5 percent discount from its 52 week high of Rs. 9938 per share and is trading at a P/E of 65.2 whereas industry P/E stands at 27.9
What is the NEWS
Srinivasan Ravi, a promoter of Craftsman Automation, is preparing to offload up to 2.01% ownership through a block deal transaction. The proposed sale is valued at nearly ₹484 crore, highlighting the scale of the offering. Shares are expected to be placed at a floor price of ₹9250 apiece, setting the minimum level for investor participation. The stake sale reports by promoter came after company raised Rs. 2000 Crores via QIP recently
Such transactions are typically undertaken to transfer a large quantity of shares efficiently to institutional and other eligible buyers. The development is expected to attract market attention, with participants tracking demand for the offering and the outcome of the placement process in the coming sessions.
About The Company and Financials
Founded over four decades ago, Craftsman Automation is a diversified engineering company with a strong presence across the manufacturing sector. The company operates through three key business verticals Powertrain, Aluminium Products, and Industrial & Engineering catering to a wide range of industries.
Craftsman has an extensive manufacturing footprint with 28 vertically integrated facilities spread across nine states in India. The company is further expanding its capacity with two plants under construction in Ludhiana and Chennai, along with one facility in Germany. Its manufacturing infrastructure spans more than 3.6 million square feet of built-up area, with facilities strategically located near major customers to enhance operational efficiency and supply-chain responsiveness.
For FY26, the company’s revenue mix is led by the Aluminium Products segment, which contributes 59% of revenue, followed by Powertrain at 27% and Industrial & Engineering at 14%, reflecting a diversified business model supported by multiple growth drivers.
Year on Year analysis: Revenue from operations has increased from Rs. 1749 Crores to Rs. 2226 Crores, up 27 percent. Operating profit has increased from Rs. 244 Crores to Rs. 359 Crores, up 47 percent and net profit has increased from Rs. 67 Crores to Rs. 116 Crores, up 73 percent.
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 2057 Crores to Rs. 2226 Crores, up 8 percent. Operating profit has increased from Rs. 312 Crores to Rs. 359 Crores, up 15 percent and net profit has increased from Rs. 107 Crores to Rs. 116 Crores, up 8 percent.
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