Craftsman-Automation-Limited-IPO-Elite
IPO-Note Craftsman Automation
Rs-1488-Rs1490 per Equity share Recommendation: Subscribe

 

Incorporated in 1986, Craftsman Automation is engaged in the manufacturing of precision components. It is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. It is among the top three-four component players with respect to machining of cylinder block for the tractor segment in India. It has three business segments (Automotive- Power train and others),(Automotive- Aluminium Products), (Industrial and Engineering). The company owns 12 state-of-the-art manufacturing facilities across 7 cities of India. Its customer base includes Tata Motors, Daimler India, Tata Cummins, Mahindra & Mahindra, Royal Enfield, Siemens, Escorts, Ashok Leyland, VE Commercial Vehicles, TAFE Motors & Tractors, etc.

 

Craftsman Automation IPO

Wants To Apply Online

 

          open-demat-online

Issue Details
Objects of the issue ·          To make repayment/pre-payment of company’s              borrowing fully or partially.

·          To meet general corporate purpose.

Issue Size Issue Size – Rs.823.70 Crore

Fresh Issue- Rs.150 Crore

Offer for Sale-Rs.673.70 Crore

Face value  

Rs.5 Per Equity Share

Issue Price Rs. 1488 – Rs. 1490
Bid Lot 10 shares
Listing at  

BSE, NSE

Issue Opens: 15thMarch2021 – 17th March 2021
QIB 50% of Net Issue Offer
Retail 15% of Net Issue Offer
NIB 35% of Net Issue Offer

 

Financial Performance:

Financial-Performance-ipo- craftsman

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 100 59.76
Public 40.24

 

Source: RHP, EWL Research,Chittorgarh.com

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Check Craftsman Automation IPO Allotment Status

Craftsman Automation IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Craftsman Automation IPO  Allotment Status
  2. Go to Application Status
  3. Select IPO as Craftsman Automation
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Craftsman Automation IPO

Application Form

 

Strengths:

  • Diversified Engineering company.

  • Strong in-house process and product design capabilities.

  • Long term and well established relationships with marquee domestic and global OEMs.

  • Extensive manufacturing footprint, with strategically located manufacturing facilities.

 Key Highlights:

  • EBITDA increased at a CAGR of 15.42% on a restated consolidated basis, from Rs.3,051.81 million in Fiscal 2018 to Rs. 4,065.51 million in Fiscal 2020.

  • Company has a healthy CFO/PAT of 4.77 Times as on 9MFY21.

  • Company has a ROE of 7.07% as of 9MFY21 vs 6.19% as of FY20.

  • Company has the highest EBITDA margin of 23% in FY19 and 27% in FY20 among peers as per CRISIL Report.

  • Debt/Equity Ratio stood at 1.15 Times as of 31,December 2021 vs 1.45 Times as of March 31,2020.

  • Interest coverage ratio stood at 1.42 Times as on FY20.

Risk Factors:

  • The extent to which the coronavirus disease (COVID-19) affects the business.

  • No long term contract with the supplier and high Finance cost could impact the profitability

  • Competitive business environment.

Outlook:

Company is engaged in the manufacturing of Automotive components and Industrial goods. Substantial business of the company comes from large Automotive OEMs and demand for the products is largely dependent on the industrial output of the automotive industry. The Auto component industry in India expected to grow at a CAGR of 5%-7% between fiscals 2020-2024 and expected decline in import by 10%-12% owing to subdued demand from OEMs and the aftermarket which will help the company to expand it’s presence in domestic as well as in Export. The post issue EPS  works out to be 34.41E and P/E works out to be 43.30E for FY21. The new scrappage policy announced by the government, 5%-7% growth in CV Industry from FY20-FY24 ,diversified portfolio of Automobile segment & Industrial goods, and established customer Base will be the key drivers of growth for the company. So we recommend to subscribe the IPO.

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