Check Before You Invest : Craftsman Automation Ltd

Snapshot

Q.1 Which industry/sub-sector does Craftsman Automation Ltd belong to?

Craftsman Automation Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Craftsman Automation Ltd a good quality company?

Craftsman Automation Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Craftsman Automation Ltd undervalued or overvalued?

Craftsman Automation Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Craftsman Automation Ltd a good buy now?

Craftsman Automation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Craftsman Automation Ltd?

Craftsman Automation Ltd revenue growth is 20% for FY-2025, which is below its 5-year CAGR of 21%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Craftsman Automation Ltd?

Craftsman Automation Ltd Return on capital employed is 8.66% for FY-2025, which is below its 5-year historical median of 15.82%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Craftsman Automation Ltd?

Craftsman Automation Ltd Return on Asset is 1.82%, which is below its 5-year historical median of 5.26%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Craftsman Automation Ltd?

Craftsman Automation Ltd Return on equity is 4.31% for FY-2025, which is below its 5-year historical median of 13.55%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Craftsman Automation Ltd?

Craftsman Automation Ltd Cash conversion cycle is 38 days, below its 5-year historical median of 45 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.75	0.85
ROE	4.31	13.55
ROCE	8.66	15.82
Cash Conversion Cycle	38 days	45 days

Q.6 Gross Profit margin of Craftsman Automation Ltd?

Craftsman Automation Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.3% for FY-2025, which is below its 5-year median of 18.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Craftsman Automation Ltd?

Craftsman Automation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.46% for FY-2025, which is below its 5-year median of 22.12% indicating decreasing margins.

Q.8 Net Profit Margin of Craftsman Automation Ltd?

Craftsman Automation Ltd Net Profit Margin is 2.43% for FY-2025, is below with its 5-year median of 6.26%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.3	18.6
Operating Profit Margin	14.46	22.12
Net Profit Margin	2.43	6.26

Q.9 Debt to Equity ratio of Craftsman Automation Ltd?

Craftsman Automation Ltd Debt-to-Equity ratio is 0.59, which is above with the industry average of 0.46, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Craftsman Automation Ltd?

Craftsman Automation Ltd Debt to cash flow from operations is 2.48, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Craftsman Automation Ltd?

Promoters hold 48.70% of the Craftsman Automation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Craftsman Automation Ltd vs industry peers?

Craftsman Automation Ltd revenue CAGR is 21.00%, compared to the industry median CAGR of 12.41%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20	12.4
Gross Profit Growth	-21.3	16.2
Operating Profit Growth	-13.3	14.7
Net Profit Growth	-52.5	20

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.75	1.23
ROE	4.31	12.01
ROCE	8.66	13.5
Cash Conversion Cycle (days)	38.27	47

Valuation & price assessment

Q.1 Stock return of Craftsman Automation Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 42.82% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	42.8%	34.3%	65.5%

Q.3 Valuation ratios of Craftsman Automation Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	107.49	44.24	28.80
Price to Book	6.26	5.09	2.99
Price to Sales	3.97	3.04	1.35
EV to EBITDA	26.55	15.55	11.86

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