Tata Group stock stock engaged in offering engineering, manufacturing, construction, and other EPC services hit a 5 percent upper circuit in the day’s trade following capacity expansion plans.
Price Action
With a market capitalization of Rs. 673.24 Crores, the shares of Artson Engineering Limited were trading at Rs. 182.30 per equity share, up 1 percent from its previous day’s close price of Rs. 180.50.
What Happened
Artson Engineering Limited has announced that it has taken additional land premises equipped with a 5 MT EOT crane, on leave and license mode at Ambad MIDC, Nashik, adjacent to the existing facility of the Company, for an initial term of Six Months for a consideration of Rs. 5 Crores.
This addition to the existing capacity will involve the proposed capacity addition of 300MT per annum to its existing metallurgy capacity of 1400 MT p.a and it will aid in the segregation of metallurgies and types of work, leading to efficient utilization of space and resources by providing the ability to work even while radiography is ongoing in designated areas.
About the Company
Artson Engineering Limited is an engineering, manufacturing, and construction (EMC) contracting company. It offers a range of services, such as design and engineering, steel structure fabrication management, and capital repairs and upgrades.
Its design and engineering service includes sizing of pumps, pipes, utilities, stress analysis, piping layouts, and isometrics.
It has a diversified range of businesses from process equipment manufacturing for oil and gas, petrochemicals, power, and metallurgy industry to construction of bulk liquid storage farms, industrial piping, structure fabrication, marine platform construction, plant repair, and other industrial services.
Its Revenue from operations declined by 35 percent from Rs. 30.12 Crores in Q2FY24 to Rs. 19.51 Crores in Q2FY25, accompanied by a profit of Rs. 3.21 Crores to a loss of Rs. 3 Crores.
Tata Group Stake
Tata Projects Limited is the promoter of Artson Engineering Limited and as of Q2FY25, it holds a 75 percent stake in the company consisting of ~2.77 Crore shares.
Written by: Bharath K.S
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