India's Craftsman Automation jumps after brokerage sees 19% upside in 12 months

Craftsman Automation

07/02/2023 06:25

** Shares of Craftsman Automation  CRAF.NS  rise as much as
4.9% to 3,463.90 rupees, their highest in nearly two weeks
    ** The rise in the diversified engineering firm's stock
comes after domestic brokerage firm Motilal Oswal Financial
Services initiates coverage of the stock with a "buy"
recommendation
    ** The target price is set at 3,925 rupees, implying a 19%
upside in the next 12 months, from the last close
    ** Terming the co as a "beneficiary of import substitution
play and increased domestic sourcing", Motilal Oswal expects
CRAF to report strong earnings over next few years aided by
cyclical recovery in automobiles segment as well as order wins
in other segments
    ** Co has a demonstrated track record of gaining market
leadership organically: Motilal Oswal
    ** Expect 13% annual standalone revenue growth over FY23-25,
says Motilal Oswal and adds that the valuations have not yet
priced in the growth possibilities in auto component industry
    ** Trading volume is 40,458 shares as of 11:30 a.m. IST,
more than half the 30-day avg of 76,458 shares
    ** Of the six analysts tracking CRAF, five maintain "buy"
and one suggests "hold"; median TP is 3,820 rupees: Refinitiv
data
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))