The shares of Auto Ancillary company specializing in precision manufacturing and automation solutions are in focus following the bulk deal involving Nippon India Mutual Fund.
Price action
With a market capitalization of Rs. 9,580.28 crores on Tuesday, the shares of Craftsman Automation Limited declined upto 1.8 percent making a low of Rs. 3,995.00 per share compared to its previous closing price of Rs. 4,068.35 per share.
What Happened
Craftsman Automation Limited, a company specializing in precision manufacturing and automation solutions, recently experienced a bulk deal, in which Nippon India Mutual Fund purchased a 0.58 percent stake. In this transaction, 1.4 lakh shares were purchased at Rs. 4,078.36 each, resulting in a total value of around Rs. 57.10 Crores.
Furthermore, this was likely followed by Mirea asset mutual fund selling approximately 1.4 lakh shares which were sold at Rs. 4078.36 each, resulting in a total value of around Rs. 57.13 Crores.
About the Company
Craftsman Automation Ltd is an Indian engineering company specializing in producing a wide range of components, including engine parts, transmission systems, and structural components for various industries like automotive, aerospace, and industrial equipment. Craftsman Automation serves major original equipment manufacturers (OEMs) and focuses on high-quality production and technological innovation.
Capex Initiatives
Craftsman Automation’s current capital expenditure (capex) stands at Rs. 700 crores, with Rs. 219 crores allocated for greenfield projects at Bhiwadi and Rs. 91 crores for Kothavadi. Future capex is expected to be less than half of the current spending, including maintenance capex.
Strategic Investments
Craftsman Automation made strategic investments totaling Rs.1,015 crore this year, including Rs. 250 crores to acquire the remaining stake in DR Axion, Rs. 606 crore as optionally convertible debentures (OCD) for Sunbeam, and Rs. 154 crore for Craftsman Germany, comprising Rs. 94 crores for acquisition and Rs. 60 crores for working capital.
Financials
The company’s revenue rose by 39.8 percent from Rs. 1,133.2 crore to Rs. 1,584.65 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 73.12 crore to Rs. 12.93 crore during the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
