This stock hit upper circuit within the first hour of market open on volumes that were 2x yesterday’s volumes and monthly average volume. The stock is a microcap with a market cap of rs. 510 crore.
The stock has been on an uptrend since May 2023 and closed 73% above its 200 day moving average on Wednesday. The company saw action after it bagged an order from Tata Projects Ltd.
Artson Engineering Ltd (“Artson”) stated in a filing dated 5th September 2023 that it has received a unit rate contract order from Tata Projects Ltd for Fabrication of Structures for AMNS Project on Conversion Basis to be executed 12 Months from the contract date. The order is valued to be Rs. 25.2 crore. Artson is held 75% by Tata Projects which would make this a related party transaction, but reported to be done at “arms length”.
Tata Holding in Artson remains stable over the last 4 quarters at 75%, rest held by the retail public, The stock has returned 79% YTD and 409% over the last three year period. This means, if you invested Rs. 1 lakh into Artson 3 years ago, it would have now been worth Rs. 5.1 lakh!
The company reported positive results in Q1 FY24. It has turned profitable from a loss making company. Artson’s revenue grew 12% YoY from rs. 37.4 crore in Q1 FY23 to Rs. 41.9 crore in Q1 FY24. In the same period, Net Profits grew 121% You from a loss of Rs. 4.9 crore to a profit of Rs. 1 crore.
EBITDA also grew a whopping 336% YoY from Rs. 1.3 crore loss to profits of Rs. 3.9 crore. The company reported Basic EPS of 0.28 in Q1 FY24 versus -1.33 in the same period previous year.
Disclaimer: Since penny stocks are generally illiquid, even a small increase in volume of buy orders can lead to the stock hitting its upper circuit. Even though the stock prices come under an average buying range for retail investors and provide huge upsides, penny stocks are prone to huge risks to retail investors. As such, you should consult your financial advisor before taking an entry into such stocks.
Written by Sandeep R
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