India's Craftsman Automation as analysts see gains from DR Axion deal

Craftsman Automation

23/03/2023 06:25

** Shares of diversified engineering company Craftsman
Automation  CRAF.NS  rise as much as 2.52% to 2,890.90 rupees
    ** Motilal Oswal reiterates "buy" rating on stock with a
target price of 3,925 rupees, citing potential gains from the
acquisition of component manufacturer DR Axion India
    ** CRAF bought 76% stake in DR Axion for 3.75 bln rupees in
December  urn:newsml:reuters.com:*:nL4N33K0MY
    ** The acquisition is complementary for CRAF as it will
increase its share in passenger vehicles segment and will be
earnings accretive, according to Motilal Oswal
    ** Upgrades FY24 and FY25 earnings per share by 14% and 11%,
respectively, to factor in the benefits from the acquisition
    ** Domestic brokerage firm Anand Rathi also reiterates "buy"
citing multiple synergies from CRAF's acquisition of DR Axion
    ** Anand Rathi has a "buy" rating on CRAF and a target price
of 3,891 rupees 
    ** Of the seven analysts tracking CRAF, six maintain "buy"
and one suggests "hold"; median TP is 3,851.50 rupees -
Refinitiv data




 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))