Craftsman Automation Q2 Review - On A Strong Growth Trajectory: Dolat Capital
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Craftsman Automation Ltd. printed an impressive performance in Q2 FY22.
Operating margin stood at 25.1% led by better mix (increasing proportion of machining revenue) and better negotiation with clients to pass raw material impact in aluminium casting, partially offset by weak margin in storage solution business.
Craftsman Automation is an ideal play on the ongoing revival in medium and heavy commercial vehicle demand and sharp improvement in heavy duty trucks given the largest player in the machining of highly engineered and critical engine parts cylinder blocks and cylinder heads where SOB is 80-100% with its clients.
We expect heavy duty trucks to see a sharp uptick in demand led by rapid increase in the demand from e-commerce for faster deliveries and pick up in the construction and mining segment.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.