Craftsman Automation Q1 Results Review - Consolidation Continues As Expected: ICICI Securities

ICICI Securities Report

Craftsman Automation Ltd.’s Q1 FY25 Ebitda came in at Rs 2 billion, down 5% QoQ (versus consensus estimate of Rs 2.2 billion).

Aluminium segment Ebitm at ~13% was ~180 basis points lower QoQ due to rise in commodity prices, and PT segment margin was impacted by:

1. Seasonality leading to weaker mix,

2. continuity of machinery refurbishmentrelated activities.

We are downgrading Craftsman Automation to Hold from Buy with DCF-based revised target price of Rs 5,012 (from Rs 5,085), implying 26x FY26E EPS.

Rating downgrade is due to-

1. recent run-up in stock price (~15% in last three months),

2. recent equity dilution, whereby, funds are yet to be deployed and

3. continuity of weak performance in PT segment.

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