Shares of Craftsman Automation Ltd remained in focus on Tuesday after reports indicated that promoter Srinivasan Ravi plans to sell up to a 2.01 percent stake through a block deal.
The proposed transaction is valued at around ₹484 crore, with shares expected to be offered at a floor price of ₹9,250 apiece. Market participants are closely watching the demand for the offering and its impact on investor sentiment.
With a market capitalization of ₹24,902 crore, Craftsman Automation shares were trading at around ₹9,521, about 5 percent below their 52-week high of ₹9,938. The stock trades at a price-to-earnings ratio of 65.2 times, compared with the industry average of 27.9 times.
Promoter stake sale
According to reports, promoter Srinivasan Ravi is preparing to offload up to 2.01 percent of the company through a block deal mechanism, which enables the transfer of large share quantities to institutional and other eligible investors.
The planned sale follows the company’s recent ₹2,000 crore qualified institutional placement (QIP).
Business profile
Founded more than four decades ago, Craftsman Automation is a diversified engineering company operating across three business segments:
- Aluminium Products
- Powertrain
- Industrial & Engineering
The company caters to automotive, industrial and engineering customers by manufacturing components and sub-assemblies according to client specifications.
Craftsman operates 28 vertically integrated manufacturing facilities across nine states. It is also expanding capacity through two plants under construction in Ludhiana and Chennai, along with a facility in Germany. Its total manufacturing footprint exceeds 3.6 million square feet.
In FY26, the company’s revenue mix comprised:
- Aluminium Products: 59%
- Powertrain: 27%
- Industrial & Engineering: 14%
Financial performance
On a year-on-year basis, revenue from operations rose to ₹2,226 crore from ₹1,749 crore, marking a 27 percent increase.
Operating profit increased 47 percent to ₹359 crore from ₹244 crore, while net profit climbed 73 percent to ₹116 crore from ₹67 crore.
Sequentially, revenue grew 8 percent from ₹2,057 crore in the previous quarter to ₹2,226 crore.
Operating profit rose 15 percent from ₹312 crore to ₹359 crore, while net profit increased 8 percent from ₹107 crore to ₹116 crore.
TL;DR:
Craftsman Automation is in focus after promoter Srinivasan Ravi reportedly planned to sell up to a 2.01% stake through a block deal worth around ₹484 crore. The move comes after the company recently raised ₹2,000 crore via a QIP. The engineering company reported strong FY26 earnings growth.
AI Summary:
- Promoter Srinivasan Ravi plans to sell a 2.01% stake in Craftsman Automation.
- The block deal is valued at around ₹484 crore.
- Shares may be offered at a floor price of ₹9,250.
- The company recently completed a ₹2,000 crore QIP.
- FY26 revenue and profit recorded strong year-on-year growth.
