Shares of this microcap company clocked 5 percent upper circuit in Tuesday’s trading session after recording an increase in net profits by 169 percent QoQ. The shares have delivered a multibagger return of 141 percent to its shareholders in one year.
With a market capitalization of Rs. 581 crores, the shares of Artson Engineering Ltd started Tuesday’s trading session on a lower note at Rs. 147.10 compared to its previous close of Rs. 149.80. During the trading session, the shares locked 5 percent upper circuit at Rs. 157.25 apiece.
Such a bullish movement in the share price was observed after the company announced January to March results. The revenue decreased by 20 percent from Rs. 31.23 crores during the December quarter to Rs. 24.87 crores in the March quarter. On a contrasting note, the net profits magnified by 169 percent from Rs. 49.26 lakhs to Rs. 1.31 crores during the same period.
Comparing these metrics on a YoY basis, the revenue declined by 15 percent from Rs. 29.30 crores during Q3FY23 to Rs. 24.87 crores in FY24. On the other hand, the net profits showcased a transition from a net loss of Rs. 9.96 crores to a net profit of Rs. 1.31 crores during the same timeframe.
As per the latest shareholding pattern, the Promoters maintain a majority stake of 75 percent in the company. Retail Investors collectively hold a significant portion of shares, accounting for 24.98 percent and the remaining 0.1 percent stake is held by DIIs.
The company specializes in storage tanks, gas carriers, and other infrastructure critical to the oil and gas, and petrochemical industries. This niche expertise presents a competitive advantage as it caters to specific, high-demand sectors.
Furthermore, being a subsidiary of Tata Projects Limited, one of India’s fastest-growing and most admired infrastructure companies, provides Artson Engineering with solid financial backing and enhanced credibility. This relationship likely offers synergies in operations, sourcing, and executing large-scale projects, which smaller competitors might not access.
Headquartered in Secunderabad, Artson Engineering was incorporated in 1978. The company engaged in the business of designing, engineering, procurement and construction contracts in the oil, gas and hydrocarbon sectors and ancillary services, including the manufacturing of structured metal products.
Written By Vaibhav Patil
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