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Artson Engineering Ltd. Stock Analysis

Small Cap
Evaluated by 174 users | BSE: 522134 | NSE: ARTSONENGG |
Engineering - Industrial Equipments
Artson Engineering, a subsidiary of Tata Projects is a multi-disciplinary design and construction services company. It was incorporated on Sept. 18, 1978 and converted into a public limited company on Sept. 22, 1986. The registered office is located at 426, M.L. Aggarwal Building, 1st Floor,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.96%-22.75%-134.35%-129.38%-2.28%-227.51%221.11%18.09%9.64%12.46%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 13660.3597964.7110101132158163
Y-o-Y Gr. Rt.--55.6%-2.2%34%-18.1%70.7%-9%31.4%19.6%3.2%
Adjusted EPS (Rs.) 1.25-3.62-10.58-2.21-0.550.47.450.4-0.38-0.2
Y-o-Y Gr. Rt.--389.6%NANANANA1762.5%-94.6%-195%NA
Book Value per Share (Rs.) -0.73-4.33-15-17.26-17.84-16.861.631.581.521.4
Adjusted Net Profit 4.6-13.4-39-8.1-21.527.51.5-1.4-0.7
Net Op. Cash Flow (Rs. Cr.) -13.7-3.4-2.410.81.310.91.4-0.22.8-12.9
Debt to Cash Flow from Ops -3.35-16.4-27.345.5947.095.8114.47-144.5611.61-4.46
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Artson Engineering Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2%20.3%17.5%3.2%
Adjusted EPS -181.6%NA-129.9%NA
Book Value per Share 00-4.9-7.9
Share Price -1.7% -11.8% -31.1% -23.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -93.41143.11109.4313.673.14-2.33-97.7724.9-24.81-13.71
Operating Profit Margin (%) 6.84-9.88-50.72-2.874.713.094.82.173.127.04
Net Profit Margin (%) 3.41-22.14-66.18-10.3-3.151.3527.331.12-0.9-0.45
Debt to Equity -17.12-3.51-1.19-0.95-0.93-1.023.44.475.8211.13
Working Capital Days 202488370246297243304226244297
Cash Conversion Cycle 4418315712-116642-29-52-69
Entity Percentage Holding
Promoters 75.00%
Institutions 0.01%
Non-Institutions 24.99%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Artson Engineering Ltd.'s performance infers:

Artson Engineering Ltd. earnings have grown by 0%, whereas share price has depreciated -11.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Artson Engineering Ltd. share prices over the last 10 years. Here is what we found out:

Artson Engineering Ltd. share price has depreciated -10.8% annually over the past ten years.

Artson Engineering, a subsidiary of Tata Projects is a multi-disciplinary design and construction services company. It was incorporated on Sept. 18, 1978 and converted into a public limited company on Sept. 22, 1986. The registered office is located at 426, M.L. Aggarwal Building, 1st Floor, Waman Tukaram Patil Marg, Opposite Shatabdi Hospital, Chembur, Mumbai-400071.

Since inception, the Company was engaged in pioneering work in developing products and systems

Artson Engineering, a subsidiary of Tata Projects is a multi-disciplinary design and construction services company. It was incorporated on Sept. 18, 1978 and converted into a public limited company on Sept. 22, 1986. The registered office is located at 426, M.L. Aggarwal Building, 1st Floor, Waman Tukaram Patil Marg, Opposite Shatabdi Hospital, Chembur, Mumbai-400071.

Since inception, the Company was engaged in pioneering work in developing products and systems in fuel handling and tankage construction activities in Refineries, this led the Company to become one of the foremost companies in India with specialization in Petroleum Storage and handling systems. In the year 1990, the Company established its own manufacturing facility at Ambad (Nashik) to support its Engineering Procurement and Construction (EPC) projects. By the Year 1994, the Company was already engaged in the multidisciplinary engineering activities.

Over the years, the Company has developed its capabilities in the multi-disciplinary construction fields for the Hydrocarbon process industry and has successfully executed, on turn-key basis, many prestigious construction contracts. The Company has thus emerged as one of the leading Design Engineering Procurement and Construction Companies in the Petroleum Storage and handling system. During the span of three decades, the Company has successfully commissioned, on turn-key basis, several fuel storage and handling facility systems and emerged as one of the foremost companies in the country which specializes in such systems. The Company’s expertise has gradually expanded beyond the Country and has been executing prestigious overseas contracts as well.

As per the Audited Balance Sheet as on 30th September 2004, the Company's networth was fully eroded due to the accumulated losses. As a consequence, the Company was referred to the BIFR as a sick company under the provisions of Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Company's reference as a sick company was registered under Case No. 152/ 2004 with the BIFR. At the hearing held on 17th May 2006 before the BIFR, Bank of India was appointed as the Operating Agency to examine viability of the Company and if found feasible, to formulate a rehabilitation scheme.

The Operating Agency submitted a Draft Rehabilitation Scheme on 5th June 2007 and the same was circulated to various parties for their consent. At the hearing held on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of the Company and the Order sanctioning the scheme of rehabilitation was received on 18th December, 2007 (Sanctioned Scheme).

In terms of the Sanctioned Scheme, Tata Projects Limited (TPL), has been admitted as the Strategic Investor and Co-promoter of the Company. TPL has committed financial assistance of more than Rs. 28 Crore, of which it has already infused funds aggregating to about Rs. 23 Crore. TPL has acquired 75% stake infusing a sum of Rs.2.77 Crore towards Equity contribution. The Company has thus become a subsidiary of Tata Projects Limited.

TPL has also taken the Management Control of the Company and has inducted its representatives as Nominee Directors on the Board of the Company on 4th January, 2008. In addition to the support in the rehabilitation of the Company as per the Sanctioned Scheme, the Company is in a position to derive benefits from TPL on many grounds including professional management, project execution intellect, quality services, TPL’s strong presence in core sectors of the economy and good governance practices.

Artson Engineering’s Core Competency:

Engineering, Procurement, Construction (EPC) Contracts

EPC services in Oil and Gas Sector. We specialize in Storage Terminals for Oil and Gas. Artson has a strong base in Engineering encompassing Designing, detailing, Layouts, Pipe stress analysis, Civil, Mechanical, Electricals and Instrumentation and commissioning assistance. Has efficient Supply Chain Management which handles all Procurement and ensures timely delivery to the Projects. Project Management teams ensuring timely construction activity with due importance to Quality and Safety. 

Construction Contracts

Proven track record of executing a number of Constructions contracts in multi disciplinary areas like Oil and Gas , Power, Food processing field. Artson employs sound Site Construction Management for Planning, Safety and Quality to Standards and specified codes, timely delivery of Contracts surpassing Customer’s requirements for Quality and Safety.

Manufacturing Division

Modern Manufacturing facilities located in Industrial Area of Ambad near the city of Nashik, about 180 kms from Mumbai. The facility is logistically and strategically located to cater for requirements of Clients in India and Overseas. Manufacturing unit manufactures Pressure Vessels, Skid Mounted Units, Structurals, Prefabricated Tanks and Prefabricated Piping. The company has proven track record of manufacturing complex equipment with various materials of Construction like Carbon Steel, Stainless Steel, Hastelloy, Alloy 20 and Incoloy.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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