Craftsman Automation - DR Axion Good Asset At Reasonable Price: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Craftsman Automation Ltd, has recently acquired 76% stake in DR Axion India Pvt Ltd. against cash consideration of Rs 3.75 billion. DR Axion India manufactures aluminium cylinder heads and blocks for passenger vehicle original equipment manufacturers. The acquisition is complementary for Craftsman Automation as-limited overlap w.r.t technology and customers,increases share of PV segment, andadds Korean OEMs viz Hyundai/Kia. We expect this acquisition to be earnings per share accretive, resulting in upgrades in our FY24E/FY25E consolidated EPS by 14%/11% to factor in for consolidation of DR Axion India and associated acquisition debt. We now estimate consol revenue/Ebitda/profit after tax to grow ~30%/28%/44% CAGR over FY23E-25E. However, we now lower our target price-equity multiple for Craftsman Automation to 18 times of FY25E EPS (versus 20 times earlier) as we now consolidate for DR Axion India. .Click on the attachment to read the full report:.GAIL - PNGRB Approves Integrated Tariff Of Rs 58.6/mmBtu: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Craftsman Automation - DR Axion Good Asset At Reasonable Price: Motilal Oswal

Complementary business driving diversification towards PV segment.

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