Craftsman Automation IPO subscribed 3.82 times. The public issue subscribed 3.44 times in the retail category, 5.21 times in QIB, and 2.84 times in the NII category by Mar 17, 2021. Analysts say that Craftsman Automation IPO is planned to list the shares on Mar 25. Craftsman Automation is raising 150 cr through fresh issue and Promoter & Individual investors are selling 45.2 lakhs equity shares through an offer for sale in the price band of Rs 1488 – Rs 1490.

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Craftsman Automation Positives:

(a)    Diversified engineering company with a focus on providing comprehensive solutions and manufacturing high quality, intricate and critical products, components and parts
(b)   Long term and well established relationships with marquee domestic and global OEMs
(c)    Experienced promoters and management team with strong domain expertise

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Craftsman Automation Investment concerns:

Craftsman Automation reported poor consolidated top-line (CAGR of 0.5% over FY2018-20), hence growth concerns remains. The company’s more than 70% revenue comes from the Automotive segment (Slowdown in automobile industries could impact the overall sales volume of the company).

Craftsman Automation Outlook & Valuation: 

In terms of valuations, the pre-issue P/E works out to 73x FY2020 earnings (at the upper end of the issue price band), which is high considering Craftsman Automation's historical two year CAGR top-line & bottom-line growth. Further, the company’s return ratios are also low compared to its other peers.