Synopsis:
Craftsman Automation’s shares rose 7 percent today following its commencement of a new plant today.
Craftsman Automation’s is commencing a new plant from today. A new plant can play a crucial role in a company’s growth plans by increasing production capacity, improving efficiency, and enabling the business to meet rising demand. It also allows the company to expand into new markets, support innovation, and strengthen its overall competitiveness.
With the market capitalization of Rs. 16,218.22 crore, the shares of Craftsman Automation Ltd is trading at Rs. 6,798.50 up by 5.83 percent from its previous day’s close price of Rs. 6,424 per equity share, and it has reached a high of Rs. 6,875 in the same trading day up by 7 percent.
What’s the News?
Shares of Craftsman Automation Limited surged 7 percent today following the commencement of commercial operations at its new plant in SIPCOT Industrial Park, Shoolagiri, Hosur, effective 16th October 2025. The expansion is expected to boost production capacity and support the company’s growth plans, driving positive investor sentiment.
The commencement of Craftsman Automation’s new plant in Shoolagiri, Hosur, marks a significant step in supporting the company’s growth trajectory. By enhancing production capacity and operational efficiency, the expansion is well-positioned to help meet rising demand and strengthen market presence.
Coupled with the company’s consistent revenue and profit growth, this development is likely to positively impact long-term growth prospects while reinforcing investor confidence.
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About the Company
Craftsman Automation Limited, incorporated in 1986 and based in Coimbatore, India, is an engineering company operating across Powertrain, Aluminium Products, and Industrial & Engineering segments.
The Powertrain segment manufactures engine parts such as cylinder blocks, cylinder heads, camshafts, transmission parts, gear box housings, turbochargers, and bearing caps. The Aluminium Products segment produces crankcases, cylinder blocks, and structural parts for passenger vehicles, two-wheelers, and heavy commercial vehicles, along with aluminium casting products for power transmission.
The Industrial & Engineering segment provides warehouse racking, V-stores, roll form products, automated storage systems, material handling equipment, gears, tool rooms, mould bases, and sheet metals.
Craftsman Automation serves a wide range of industries, including automotive, commercial vehicles, railways, power transmission, industrial engineering, logistics, pharmaceuticals, F&B, e-commerce, and electronics, and also exports its products internationally.
A return on equity (ROE) of about 9.41 percent, a return on capital employed (ROCE) of about 11.7 percent and debt to equity ratio at 0.83 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 70.3x higher as compared to its industry P/E 29.7x.
In Q1FY26, the company reported revenue of Rs. 1,784 cr, up 55 percent YoY from Rs. 1,151 cr in Q1FY25 and 2 percent QoQ from Rs. 1,749 cr in Q4FY25. Net profit for the quarter stood at Rs. 70 cr, up 19 percent YoY from Rs. 59 cr in Q1FY25 and 4 percent QoQ from Rs. 67 cr in Q4FY25, reflecting consistent growth in both revenue and profitability.
Written by Akshay Sanghavi
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