1. At a Glance
Ladies and gentlemen, let me present Craftsman Automation Ltd (CAL) — the company that started as a small Coimbatore garage in 1986 and is now billing like it owns half the aluminium in Germany. Current market cap? ₹16,218 Cr. Stock price? ₹6,804 — about the price of a decent iPhone EMI.
In Q1 FY26, the company clocked ₹1,784 Cr in sales (+55% YoY) and ₹75.6 Cr PAT (+42% YoY). Sales growth? Juicy. Profit margins? Squeezed thinner than a dosa — just 3.8% net margin. P/E? A nosebleed 70x, because apparently the market thinks “aluminium casting” is the new AI.
Return on Equity? 9.4%. ROCE? 11.7%. Basically, it’s like a student who scores 40/100 in theory but still charges IIT coaching fees.
2. Introduction
If GIC Housing was the lazy PSU uncle, Craftsman Automation is that over-ambitious cousin who does ten things at once: auto components, aluminium casting, storage racks, German factories, and even green power investments.
Headquartered in Coimbatore with 16 facilities across India, CAL has transformed from a sleepy supplier into a global MNC buyer — swallowing DR Axion, Sunbeam Lightweighting, and German foundries faster than you swallow roadside pani puri.
But here’s the kicker — while top line is sprinting, bottom line is jogging in hawai chappals. PAT margin has collapsed from 28% in FY20 to under 4% now. Debt is still ₹2,358 Cr, P/B is a thicc 5.7x, and P/E makes it look more expensive than Schaeffler or Bosch.
So the real question: Is this “next Bharat Forge” or just a high-priced casting circus?
3. Business Model – WTF Do They Even Do?
Let’s break it down for the lazy investor who thinks “casting” is about Bollywood:
- Aluminium Products (47% revenue H1 FY25 vs 20% in FY22)
- They make crankcases, cylinder blocks, gearbox housings, engine structural parts.
- Business exploded 380% in two years thanks to DR Axion acquisition.
- Translation: They supply the skeleton of cars while you flex about EVs.
- Powertrain (36% vs 52% earlier)
- Cylinder blocks, camshafts, turbo housings, transmission parts.
- Basically, if it moves and makes noise, Craftsman probably machined it.
- Industrial & Engineering (17%)
- Storage racks, automated retrieval systems, pharma/cold storage solutions.
- The “non-auto” dream — except margins are also non-existent.
Geography? 96% domestic, 4% exports. In short: heavy India-focused, with token German
