Craftsman Automation (CRAF.BO): First Take: 2Q in-line: Focus on rev beat drivers + forward margin levers

Goldman Sachs First Take on Craftsman Automation (CRAF.BO): the company reported an in-line 2QFY27, with revenue/EBITDA up 47%/30% yoy and +18%/+1% vs. the Visible Alpha consensus. Inventory de-valuation on recent aluminium procurement, pre-operating costs in new capacity expansion and pending customer settlements on recent RM cost inflation appear to be driving the qoq margin moderation. Another key investor query is the magnitude of the topline beat (+18%) and how much of it is recurring — i.e., whether it is mostly value-addition led or partly commodity inflation. At the earnings call on Oct 29, the analysts look for clarity on these topics as well as progress on the Sunbeam margin improvement plan, the land parcel liquidation initiative and new business potential from the expanded Tata Motors-Stellantis partnership scope. The stock remains Buy rated with a 12-month target price of Rs13,000 (18.1% upside from Rs11,010.80), based on 32x P/E applied to Q5-Q8 estimates.