This Auto Ancillary Stock Rises 455% in 5 Years: What Fuelled the Run?

This auto ancillary stock has turned approximately Rs 1 lakh into about Rs 5.55 lakh over five years, delivering a return of approximately 454.83% as of 10 September 2026. That gain ranks it 19th among 101 large-cap and mid-cap NSE shares on our screen, and the rally has picked up speed in 2026 rather than slowing down.

The company behind the move is Craftsman Automation Ltd (NSE: CRAFTSMAN), a Coimbatore-based maker of engine parts, aluminium castings, alloy wheels and industrial storage systems, with a market capitalisation of approximately Rs 31,008 crore. The Craftsman Automation share price traded near Rs 11,925 on Thursday afternoon, up about 1% on the day, after touching a fresh record high of Rs 11,999 during the session.

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How Much Has This Auto Ancillary Stock Returned in 5 Years?

Working backwards from the current price, the 454.83% return implies the Craftsman Automation share price stood near Rs 2,150 in September 2021. The auto ancillary stock had listed in March 2021 at about 9% below its IPO price of Rs 1,490, and is now up roughly eight times from that issue price.

There has been no stock split or bonus issue since listing, so the return reflects genuine price appreciation. The table below shows how this auto ancillary stock ranks across periods on the same 101-stock screen.

Period	Return	Rank (out of 101)
1 Month	11.93%	16
6 Months	62.40%	22
1 Year	70.65%	20
3 Years	150.74%	32
5 Years	454.83%	19

The three-year rank of 32 is the weakest on the list, because the auto ancillary stock went sideways for much of 2024 and early 2025 while profits dipped. The one-year gain of 70.65% and the six-month gain of 62.40% show that most of the recent momentum arrived after that earnings reset ended.

The 52-week range runs from Rs 6,324 to Rs 11,999, which means the auto ancillary stock has nearly doubled from its low and now trades at its high. That leaves the auto ancillary stock little cushion if sentiment turns.

Why Did This Auto Ancillary Stock Rise 455% in 5 Years?

The short answer: the company grew revenue nearly four times in five years by moving from engine parts into aluminium castings and alloy wheels, and a sharp profit recovery in FY26 and Q1 FY27 re-rated the auto ancillary stock in 2026. The rise of this auto ancillary stock came in two waves, with a long pause in between.

From late 2021 to mid-2024, the auto ancillary stock climbed on acquisitions and volume growth. It then stalled as margins fell during integration. From May 2026, record results and institutional money pushed the auto ancillary stock to one record after another.

1. Early Driver: Aluminium Scale-Up Through Acquisitions

In December 2022, the company agreed to buy a 76% stake in DR Axion India for about Rs 375 crore. DR Axion makes aluminium cylinder heads for passenger vehicles. The auto ancillary stock hit a record high that day, and the remaining 24% was acquired in 2024.

In June 2024, it signed an agreement to acquire the business of Sunbeam Lightweighting Solutions, another aluminium die-casting supplier. Aluminium volumes rose from 15,885 tonnes in FY22 to 94,904 tonnes in FY26, according to company disclosures.

2. The FY25 Dip and the FY26 Recovery

The acquisitions came at a cost. Net profit fell from Rs 337 crore in FY24 to around Rs 201 crore in FY25 as operating margins dropped from about 20% to under 15%, and the auto ancillary stock drifted sideways. Sunbeam brought large revenue but thin margins.

FY26 reversed that trend. Revenue rose about 42% to approximately Rs 8,069 crore, EBITDA grew around 51% to about Rs 1,300 crore and net profit nearly doubled, rising about 91% to Rs 384 crore. On 7 May 2026, after the Q4 FY26 results, the auto ancillary stock jumped about 13% in one session to a then record of Rs 8,775.

3. A Blowout Q1 FY27 and New Growth Lines

Q1 FY27 results on 30 July 2026 extended the run for the auto ancillary stock. Consolidated revenue rose about 36% year on year to around Rs 2,432 crore, EBITDA climbed about 51% to Rs 408 crore and net profit jumped around 116% to Rs 151 crore.

Every segment of the auto ancillary stock contributed. Aluminium products revenue grew about 38%, powertrain about 26% and the industrial and engineering segment about 53%. Management also said four of six large customers have placed orders for heavy horsepower stationary engine parts, a programme it targets at about USD 100 million in revenue by FY30.

4. A Rs 2,000 Crore QIP Brought in Big Institutions

In June 2026, the company raised Rs 2,000 crore through a qualified institutional placement at Rs 8,700 per share. Large domestic mutual funds and insurers took most of the allotment. That fresh demand helped the auto ancillary stock move from about Rs 8,700 to nearly Rs 12,000 within three months.

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Auto Ancillary Stock Financials: Quarterly Trend

The quarterly numbers for this auto ancillary stock show improvement across five straight quarters, with net profit more than doubling from the June 2025 quarter.

Quarter	Total Income (Rs Cr)	EBITDA (Rs Cr)	Net Profit (Rs Cr)	Net Margin
Jun 2025	1,789	270	69.6	4.24%
Sep 2025	2,011	311	90.9	4.56%
Dec 2025	2,085	340	107.1	5.34%
Mar 2026	2,246	378	116.4	5.25%
Jun 2026	2,455	407	150.6	6.19%

Net margin rising from 4.24% to 6.19% in a year is the key reason this auto ancillary stock has re-rated. Better utilisation in the aluminium plants and a cleaner mix at Sunbeam are doing the work. Margins are still below the 7% to 8% earned in FY22 to FY24.

Five-Year Growth Record

For the auto ancillary stock, total income rose from about Rs 2,224 crore in FY22 to Rs 8,131 crore in FY26, a compound growth rate of roughly 38% a year. Net profit grew from Rs 163 crore to Rs 384 crore over the same period. Capex, however, climbed from about Rs 213 crore to Rs 1,188 crore a year, and management has guided for around Rs 1,500 crore in FY27.

Is This Auto Ancillary Stock Expensive After the Rally?

Yes, on trailing numbers it trades at a clear premium to its peers. The auto ancillary stock trades at a price-to-earnings ratio of about 66.7 on trailing earnings per share of Rs 177.77, against an industry PE of around 39. The price-to-book ratio is about 5.9.

Metric	Value
Current Price (10 Sep 2026)	Approximately Rs 11,925
Market Cap	Approximately Rs 31,008 Cr
PE Ratio (TTM)	66.69
Industry PE	38.97
Price to Book	5.90
ROE	11.76%
Debt to Equity (FY26)	0.98
52W High / Low	Rs 11,999 / Rs 6,324

A return on equity of about 11.8% is modest for an auto ancillary stock at this multiple. The market is pricing this auto ancillary stock on expected earnings growth, not current returns. Any slowdown in profit growth would leave the valuation exposed.

Who Owns This Auto Ancillary Stock? Shareholding Trend

Domestic institutions have been steady buyers of this auto ancillary stock. DII holding rose from 22.67% in June 2025 to 32.90% in June 2026, while FII holding rose to 17.28% in the latest quarter.

Quarter	Promoters	FII	DII	Public
Jun 2025	48.70%	15.83%	22.67%	12.80%
Sep 2025	48.70%	15.44%	24.37%	11.48%
Dec 2025	48.70%	16.02%	25.24%	10.04%
Mar 2026	48.70%	15.19%	28.29%	7.82%
Jun 2026	42.41%	17.28%	32.90%	7.41%

The drop in promoter holding to 42.41% needs context. Part of it is dilution from the QIP. The rest came from a block deal in June 2026, in which the Chairman and MD sold about 2% of the company at Rs 9,250 per share, worth around Rs 486 crore, with a 180-day lock-up on further sales.

Key Risks for the Auto Ancillary Stock

The auto ancillary stock rally has support in the numbers, but the risks are real at a record high.

Valuation risk: At about 67 times trailing earnings, the auto ancillary stock is priced well above the industry. A single weak quarter could trigger a sharp correction.

Capital intensity: Capex of around Rs 1,500 crore a year keeps free cash flow thin for this auto ancillary stock. Operating cash flow in FY26 was about Rs 522 crore against capex of Rs 1,188 crore, so growth depends on continued access to funding.

Sunbeam restructuring: Management expects Sunbeam revenue to fall about 10% to 20% as it exits low-margin work. Delays could weigh on margins of the auto ancillary stock.

Auto cycle exposure: As an auto ancillary stock, it depends on vehicle production volumes, raw material pass-through and customer schedules. Powertrain capacity use was around 70% in Q1 FY27, and a slowdown in passenger vehicle or commercial vehicle demand would hit volumes.

Promoter supply: The promoter stake is now at its lowest since listing, and further sales after the lock-up could cap the upside for this auto ancillary stock.

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Craftsman Automation Share: Analyst View

The Craftsman Automation share has moved well past most published brokerage estimates. In 2024, domestic brokerages had issued targets in a range of about Rs 5,000 to Rs 6,400, and the stock has roughly doubled beyond the upper end of that range since then.

After Q1 FY27, some analysts noted that much of the positive outlook for the auto ancillary stock was already priced in. The debate is no longer about the business trend, but about how much future growth this auto ancillary stock already reflects.

Craftsman Automation Share Price Target

On 9 September 2026, a market analyst suggested a medium-term Craftsman Automation share price target range of Rs 13,000 to Rs 15,000, advising accumulation on dips in the Rs 10,000 to Rs 11,000 zone. That range implies upside of approximately 9% to 26% from the current price of around Rs 11,925.

Beyond that view, no fresh verified brokerage Craftsman Automation share price target covering the latest quarter is publicly available. On the chart, the June QIP price of Rs 8,700 and the block deal price of Rs 9,250 act as reference zones, while the record high of Rs 11,999 is the immediate resistance. Any Craftsman Automation share price target should be read as an estimate, not a promise.

Conclusion

This auto ancillary stock has earned its 455% five-year return the hard way: through acquisitions, heavy capex, a painful profit dip in FY25 and a strong recovery in FY26 and Q1 FY27. Revenue has nearly quadrupled, margins are climbing and institutions keep adding to this auto ancillary stock.

The flip side for the auto ancillary stock is a premium valuation, a falling promoter stake and heavy capex needs. For long-term investors, the auto ancillary stock remains one to track closely, with the next two quarters of margin data likely to decide whether the Craftsman Automation share price can hold its record levels.

Frequently Asked Questions

Why is Craftsman Automation share price rising?

Ans. The Craftsman Automation share price is rising because of strong earnings growth, with FY26 net profit up about 91% and Q1 FY27 net profit up about 116% year on year. A Rs 2,000 crore QIP in June 2026 also brought in large institutional investors.

How much has Craftsman Automation returned in 5 years?

Ans. Craftsman Automation has returned approximately 454.83% over five years as of 10 September 2026, ranking 19th among 101 NSE stocks on our screen. There was no split or bonus in this period, so the return reflects genuine price appreciation.

What does Craftsman Automation do?

Ans. Craftsman Automation makes powertrain components, aluminium castings, alloy wheels and industrial products such as storage and material handling systems. It runs 28 plants across nine Indian states and one in Germany.

What is the Craftsman Automation share price target?

Ans. A market analyst has suggested a medium-term target range of Rs 13,000 to Rs 15,000, recommending accumulation between Rs 10,000 and Rs 11,000. Older brokerage targets from 2024 were in the Rs 5,000 to Rs 6,400 range and have already been crossed.

Is Craftsman Automation overvalued?

Ans. The stock trades at a PE of about 66.7 against an industry PE of around 39, so it carries a clear premium. That makes it sensitive to any earnings miss.

Why did the promoter holding in Craftsman Automation fall?

Ans. Promoter holding fell from 48.70% to 42.41% in the June 2026 quarter due to QIP dilution and a block deal of about 2% by the Chairman and MD at Rs 9,250 per share. The sale came with a 180-day lock-up on further sales.

What are the key risks for Craftsman Automation?

Ans. The main risks are a high valuation, heavy annual capex of around Rs 1,500 crore, the ongoing Sunbeam restructuring and exposure to the auto production cycle.

What was Craftsman Automation's Q1 FY27 result?

Ans. In Q1 FY27, consolidated revenue rose about 36% to around Rs 2,432 crore and net profit jumped about 116% to Rs 151 crore. EBITDA margin improved to about 17% from 15% a year earlier.