Craftsman Automation Ltd.

“Craftsman Automation is a capably run precision machining compounder with a genuine but structurally narrowing moat in ICE powertrain and an unproven pivot toward aluminium die casting and industrial storage. ROCE of 14-17% and founder alignment are positives, but negative FCF, 2.1x leverage, and a 31.8x forward P/E embedding best-case transition assumptions leave no margin of safety. The singular permanent risk — EV displacement of half the revenue base — is slow-moving but irreversible, and the current price demands a level of conviction that the evidence does not support. Track for a materially better entry or demonstrated aluminium/industrial scale.”