Weak 1Q; gradual recovery expected ahead

Company
26 Jul 2024
5 Min read 
  • Craftsman Automation reported a weak 1Q performance with PAT significantly below estimates.
  •  The company's aluminum segment margins were impacted by weak demand in PVs and rising input costs.
  •  New acquisitions open up significant growth opportunities for the company.
  •  The company is expected to deliver stronger growth momentum from FY26 onward.
  •  The company's stock appears attractively valued at ~37x/24x FY25E/FY26E consolidated EPS.
  •  The management expects the powertrain business to post high-single-digit growth on the back of new order wins.
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