CRAFTSMANBSECraftsman Automation LtdMediumNeutral
Announced Wed, 13 May · 15:20 IST

Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015 and our intimation and outcome letter dated 27th April, 2026 and 08th May, 2026 respectively, we are enclosing herewith the ....

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CRAFTSMAN · price

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Price reaction · full curve 14 horizons · vs prior close
-1.2%1-day move
₹8647.00
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₹8604.00
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AI summary

Craftsman Automation held its earnings call for FY2026. The alloy wheel business is ramping up to a ~3 million wheel exit rate (annualized) out of 5.5 million capacity, contributing ~INR 280 crore revenue. The recently acquired Sunbeam (aluminum die casting) remains at single-digit margins due to restructuring: exiting unprofitable customers, product lines, and resetting legacy prices, with management expecting traction from Q2 FY27 onward. The company guided for mid-teens revenue growth in FY27, supported by new projects across powertrain and aluminum. The stationary engine business is on track to reach $100 million revenue by FY29-30. Management flagged escalating manpower costs (~20% YoY inflation) as a bigger concern than debt, offset partly by automation. Net debt/EBITDA stood at 2.43x, expected to fall below 2x in FY27 and toward 1.5x thereafter. A greenfield DR Axion plant in Sriperumbudur (acquired via Suprash Developers/Srikara Technologies for ~INR 150 crore for 50 acres) is targeted for commissioning by December 2026.

Likely market impact

While the structural turnaround at Sunbeam and aluminum consolidation plan are positive long-term, near-term margin recovery remains uncertain as management declined to commit to specific margin improvement timelines. The rising manpower cost pressure and high debt level (INR 3,300 crore) keep the stock under watch for operational execution risk.