Strong Momentum Drives Stock to New Heights
The stock demonstrated impressive strength in trading on 31 Dec 2025, opening with a gap up of 3.03% and touching an intraday high of Rs. 7,628.6, marking a 6.65% increase on the day. This performance outpaced the Auto Components & Equipments sector by 5.54%, reflecting Craftsman Automation’s superior market positioning. Over the past two days, the stock has delivered consecutive gains, accumulating an 8.25% return during this period.
Craftsman Automation is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum and technical strength.
Market Context and Comparative Performance
The broader market environment also supported this rally. The Sensex opened 118.50 points higher and was trading at 84,939.73, up 0.31%, inching closer to its own 52-week high of 86,159.02, just 1.44% away. The Sensex’s position above its 50-day moving average, which itself is above the 200-day moving average, indicates a bullish market trend. Additionally, the BSE Small Cap index gained 0.78%, leading the market, which aligns with Craftsman Automation’s classification as a small-cap stock.
Over the last year, Craftsman Automation has outperformed the Sensex significantly, delivering a 43.00% return compared to the Sensex’s 8.70%. The stock’s 52-week low was Rs. 3,700, highlighting the substantial appreciation in value over the period.
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Financial Performance Underpinning the Rally
Craftsman Automation’s recent financial results have been a key driver behind the stock’s upward trajectory. The company reported its highest quarterly PBDIT at Rs. 301.90 crore, with Profit Before Tax excluding other income (PBT LESS OI) rising 59.7% compared to the previous four-quarter average, reaching Rs. 116.23 crore. Net Profit After Tax (PAT) for the quarter stood at Rs. 91.22 crore, marking a 56.8% increase over the previous four-quarter average.
These results reflect a healthy growth trajectory, with net sales expanding at an annual rate of 36.77% and net profit growing by 30.44%. The company has declared positive results for two consecutive quarters, reinforcing its consistent performance.
Valuation and Efficiency Metrics
Craftsman Automation maintains a strong return on capital employed (ROCE) of 15.89%, indicating efficient utilisation of capital. The company’s valuation metrics also suggest a fair assessment, with a ROCE of 9.7 and an enterprise value to capital employed ratio of 3.3. Notably, the stock is trading at a discount relative to its peers’ average historical valuations, offering a compelling value proposition within its sector.
Despite the robust price appreciation, the company’s profits have risen by 4.7% over the past year, resulting in a PEG ratio of 13.7, which reflects the relationship between price growth and earnings growth.
Institutional Confidence and Market Position
Institutional investors hold a significant stake in Craftsman Automation, with 39.81% ownership. This group increased their holdings by 1.31% over the previous quarter, signalling sustained confidence in the company’s fundamentals. Institutional backing often correlates with thorough fundamental analysis and long-term commitment, which can provide stability to the stock price.
Over the long term, Craftsman Automation has consistently outperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting its market-beating performance.
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Mojo Score and Rating Upgrade
Reflecting its strong fundamentals and market performance, Craftsman Automation holds a Mojo Score of 81.0, categorised as a Strong Buy. This represents an upgrade from its previous Buy rating, effective from 16 Dec 2025. The company’s market capitalisation grade stands at 3, consistent with its small-cap status.
The upgrade in rating underscores the company’s improved financial metrics and positive trend assessments, reinforcing its position within the Auto Components & Equipments sector.
Summary of Key Metrics
To summarise, Craftsman Automation Ltd’s stock price has surged to Rs. 7,628.6, marking a new 52-week and all-time high. The stock’s recent gains have been supported by strong quarterly earnings, efficient capital utilisation, and growing institutional interest. Its performance has outpaced both sector peers and broader market indices, with a one-year return of 43.00% compared to the Sensex’s 8.70%.
The company’s consistent growth in net sales and profits, combined with a favourable valuation and technical strength, have contributed to this milestone. The stock’s ability to trade above all major moving averages further confirms its positive momentum.
As of 31 Dec 2025, Craftsman Automation Ltd stands as a notable example of sustained growth and market confidence within the Auto Components & Equipments sector.
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