Shares of this microcap company clocked 5 percent upper circuit in Monday’s trading session after receiving an order worth Rs. 126.15 crores from Guwahati International Airport. The shares have delivered a muti-bagger return of 136 percent to its shareholders in one year.
With a market capitalization of Rs. 682 crores, the shares of Artson Engineering Ltd started Monday’s trading session on a higher note at Rs. 184.60, clocking 5 percent upper circuit compared to its previous of Rs. 175.85 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Award from Guwahati International Airport Ltd for the Engineering and Construction of ATF Fuel Farm and Hydrant System at Guwahati International Airport worth Rs. 126.15 crores.
Coming onto the company’s financial statements, 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 Q4FY23 to Rs. 24.87 crores in Q4FY24. 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.
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.
As per the latest shareholding pattern, the Promoters maintain a majority stake of 75 per cent 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.
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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