Craftsman Automation Ltd. IPO

IPO Details:

Price Band: 1488-1490

Cutoff Price: 1490

About Company:

Diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely power-train and other products for the automotive segment, aluminium products for the automotive segment and industrial and engineering products segment. 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. Craftsman is among the top three-four component players with respect to machining of cylinder block for the tractor segment in India. It is present across the entire value chain in the Automotive-Aluminium Products segment, providing diverse products and solutions. It's strong in-house engineering and design capabilities help them offer comprehensive solutions and products to long-standing domestic and international customers in each of the segments in which we operate.

Competitive Strengths:

1. Diversified engineering company with a focus on providing comprehensive solutions and manufacturing high quality, intricate and critical products, components and parts

2. Strong in-house process and product design capabilities with the ability to interchange capacity and product mix

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

4. Extensive manufacturing footprint, with strategically located manufacturing facilities

5. Experienced management team supported by motivated and skilled work force

6. Robust financial performance in a challenging business environment

Strategies:

1. Leverage vertically integrated manufacturing and engineering capabilities, to tap the growing opportunities for aluminium usage in the Automotive–Aluminium Products and Industrial and Engineering segments

2. Increase our wallet share and acquire new business by leveraging existing OEM relationships and adding new customers

3. Growing opportunities in storage solutions

4. Continue to reduce operating costs and improve operational efficiencies

Financial Performance:

Revenues and Earnings of the company is highly volatile in last 3 years.

Objects of the Issue:

1. Fresh issue of Equity shares to be used for repayment/pre-repayment in full or part of certain borrowings and for general corporate purpose

2. Offer for Sale

Our view: With EPS of Rs 20.41, company cutoff price is valued at P/E of 73 which is overvalued and that too when the company revenues and net profit is too much volatile. I am not applying for this IPO because of poor subscription data and grey market premium.

Do visit this blog and the link after 6pm to get updated details on grey market premium and subscription details.

Grey Market Premium:

Subscription Details:

Allotment Status: Link

Listing Status:

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