Artson Engineering share price target 2025, 2030: Hello friends, welcome to another post where we will analyse another engineering company that has given 116% returns to its investors in the last 1 year and 45% returns in the last 3 years. Friends, we are talking about Artson Engineering Ltd. We will analyse its revenue, expenses, net profit and balance sheet to conclude what will be the future share price targets for Artson Engineering.
Artson Engineering Ltd- Company overview
| About Company | Particulars |
|---|---|
| Company Name | Artson Engineering Ltd. |
| BSE share code | 522134 |
| NSE share code | Not listed |
| Sector | Construction & Engineering |
| Headquarters | Mumbai |
| Foundation Year | 1978 |
| Key Person | Vinayak Pai (Non Executive Chairman) |
| Market Cap | ₹ 603 Cr. |
| 52 Week high | ₹ 218.10 |
| 52 Week Low | ₹ 62.00 |
| Official Website | Artson Engineering Website |
Artson Engineering Ltd is a subsidiary of TATA projects limited and was founded in 1978. The company was incorporated as a private limited company by Mr N.K Jagasia and Mr P.S Chopde.
Artson Engineering Limited manufactures heat exchangers, pressure vessels, columns as well as constructs industrial and technological buildings and equipment for the energy and hydrocarbon sectors.
The company builds products for Chemical, metal and minerals, Fertilizer, power and Marine platforms.
In the year 2007 TATA PROJECTS LIMITED took 75% stake in the company and has remained a subsidiary of TPL since and serves the Indian market with additional projects across the Persian Gulf region.
Some clients of Artson Engineering Limited include names like Indian Oil Corporation, Bharat Petroleum Corporation Ltd., Thermax, Tata Steel, BHEL and GAIL etc.
Artson’s production plants can be found in Nasik and close to Nagpur in Umred, with an annual output capacity exceeding 15,000 tons.
Artson Engineering Ltd is a subsidiary of TATA projects limited and was founded in 1978. The company was incorporated as a private limited company by Mr N.K Jagasia and Mr P.S Chopde.
Artson Engineering Limited manufactures heat exchangers, pressure vessels, columns as well as constructs industrial and technological buildings and equipment for the energy and hydrocarbon sectors.
The company builds products for Chemical, metal and minerals, Fertilizer, power and Marine platforms.
In the year 2007 TATA PROJECTS LIMITED took 75% stake in the company and has remained a subsidiary of TPL since and serves the Indian market with additional projects across the Persian Gulf region.
Some clients of Artson Engineering Limited include names like Indian Oil Corporation, Bharat Petroleum Corporation Ltd., Thermax, Tata Steel, BHEL and GAIL etc.
Artson’s production plants can be found in Nasik and close to Nagpur in Umred, with an annual output capacity exceeding 15,000 tons.
Artson Engineering share price Target table
In this article, we will analyse Artson Engineering revenue, net profit, ratios, and other financials to conclude what will be the Artson Engineering share price target 2025, 2030.
If you do not want to go through our research and stock analysis, then you can refer to the table below for Artson Engineering share price targets.
| Artson Engineering share price Target | 1st target | 2nd target |
|---|---|---|
| Artson Engineering share price Target 2024 | ₹ 215.45 | ₹ 218.96 |
| Artson Engineering share price Target 2025 | ₹ 270.22 | ₹ 275.87 |
| Artson Engineering share price Target 2030 | ₹ 425.81 | ₹ 440.11 |
Analysis of financial ratios of Artsons Engineering Ltd
To start evaluating the company’s performance, we will have a look at some of the important financial indicators that reflect the recent operations of the company.
| Parameter | Value |
|---|---|
| Market Cap | ₹ 603 Cr. |
| Current Price | ₹ 163 |
| High / Low | ₹ 218 / 62.0 |
| ROCE | -22.5 % |
| ROE | Not available |
| Profit after tax | ₹ -5.23 Cr. |
| Price to Earning | Not available |
| Debt | ₹ 62.0 Cr. |
| Sales growth | -10.8 % |
| Profit growth | 66.3 % |
| Industry PE | Not available |
| Return over 1 year | 116 % |
Market cap
Although Artson Engineering is a TATA subsidiary but with a market cap of only Rs 603 crores, you can see that the company is very small. The current price of the stock is Rs 163 with a 52 week high of Rs 218 and low of Rs 62.
Book Value and P/E ratios
The stock P/E and Industry P/R ratios are not available and that is why it is hard to evaluate if the stock is overpriced or underpriced. The book value per share is in the negative at Rs -0.29 which again shows that the company is in some sort of financial distress.
ROCE and ROE
The ROCE is -22.5% meaning the company is losing its capital rather than making returns on it. ROE data is also not available but looking at the previous ROE number we can assume that the company is not making returns on the equity either.
Sales growth and PAT
In the trailing twelve months the company has reported losses of Rs 5.23 crores and a sales growth rate of -10.8% which again shows that the company is struggling.
Debt to Equity
The Debt to equity ratio is less than 1 at 0.82 which means that the company is capable of paying off the debt. The total debt remaining is Rs 62 crores.
Profit Growth rate
Profit growth rate is 66.3% but this is because Artson Engineering made a loss of Rs 21 crores in March 2023 but in trailing twelve months the loss has come down to 7 crores.
All in all the financial ratios of the company are concerning. The company has made returns of 116% for the investors in the last one year. However the stock price increase could be due to market sentiments or overall sector’s performance.
Also Read: Mazagon Dock share price target
Why are the profits of Artson Engineering falling ?
Artson Engineering has stopped bidding for engineering procurement and construction (EPC) projects because of the low margins and has started focusing on ship building activities. In FY24 the company will focus on completing its current EPC projects and not accept new ones which should improve the EBITDA.
In FY25 the profits of the company are expected to increase to 9-10% Furthermore, 3
profitability is likely to improve to 9%-10% from FY25, led by an increase in manufacturing activities, decline in the revenue contribution from the low-margin EPC segment, and a likely improvement in the working capital cycle.
Profit and loss of Artson Engineering Ltd.
We need to analyse a company’s financial journey to see how well a company is performing in terms of sales, profit margins and expenses. This will help us find out the company’s growth trends and potential areas of improvement.
Figures in Rs. Crores
| Profit & Loss | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM |
|---|---|---|---|---|---|---|
| Sales | 158 | 163 | 150 | 173 | 131 | 133 |
| Expenses | 153 | 152 | 146 | 166 | 142 | 129 |
| Operating Profit | 5 | 11 | 4 | 7 | -11 | 4 |
| OPM % | 3% | 7% | 3% | 4% | -8% | 3% |
| Other Income | 3 | 7 | 2 | 1 | 1 | 1 |
| Interest | 7 | 10 | 10 | 11 | 10 | 10 |
| Depreciation | 1 | 2 | 1 | 1 | 1 | 2 |
| Profit before tax | 0 | 6 | -5 | -4 | -21 | -7 |
| Tax % | 1,508% | 112% | -11% | -15% | -12% | |
| Net Profit | -2 | -1 | -6 | -5 | -24 | -5 |
| EPS in Rs | -0.46 | -0.20 | -1.54 | -1.36 | -6.37 | -1.42 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Sales
The sales of the company have been increasing at a very slow pace. In March 2019 the company reported sales of Rs 158 crores and that number reduced to Rs 131 crores by March 2023.
The compounded sales growth rate for the last 5 years is 0% which shows that the company is either not getting new orders or clients or the competitor companies are doing better.
Expenses
The expenses of Artsons Engineering are rising at a rapid pace. For example in March 2023 the company made expenses of Rs 142 crores to achieve sales numbers of 131 crores. These expenses majorly consist of manufacturing cost and material cost.
Operating and net profit
Due to high expenses the company reported operating loss of Rs 11 crores in March 2023. After adding interest payable, depreciation, other income and tax, net loss of the company comes out to be Rs 24 crores which is bad for such a small company.
Going forward, Artson Engineering not only needs to get new orders, but they also need to curtail their expenses to achieve profitability.
Also Read: A2Z Infra share price target
Balance sheet analysis of Artson Engineering
Figures in Rs. Crores
| Balance Sheet | Mar 2022 | Mar 2023 | Sep 2023 |
|---|---|---|---|
| Equity Capital | 4 | 4 | 4 |
| Reserves | -3 | -19 | -5 |
| Borrowings | 53 | 59 | 62 |
| Other Liabilities | 87 | 112 | 86 |
| Total Liabilities | 141 | 156 | 147 |
| Fixed Assets | 11 | 12 | 15 |
| CWIP | 0 | 0 | 0 |
| Investments | 0 | 0 | 0 |
| Other Assets | 129 | 144 | 132 |
| Total Assets | 141 | 156 | 147 |
Now let’s analyse the balance sheet of Artson Engineering Ltd to see if there are any worrying signs for the investors.
When we look at the equity capital of the company, it is Rs 4 crores and has not changed since the last 10 years. This means that Artson Engineering has not raised money by issuing new shares.
The reserves of the company in September 2023 are also negative 5 crores which is a point of concern. However, the reserves have improved because in March 2023 they were Rs -19 crores.
The borrowings or Debt of the company stands at Rs 62 crores but debt to equity ratio of 0.82 shows that the debt is under control and the company is very much capable of paying it off.
Other liabilities which include trade payables, advance from the customers and other liability items come to a total of Rs 86 crores.
The fixed assets of Artson Engineering are only Rs 15 crores which needs improvement. However, the fixed assets have been increasing slowly since the last 4-5 years.
Other assets value at Rs 132 crores which brings the company’s total assets at Rs 147 crores.
In summary, Artson Engineering needs to improve its reserves, fixed assets and decrease the liabilities.
Shareholding Pattern
Numbers in percentages
| Shareholder | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Dec 2023 |
|---|---|---|---|---|---|
| Promoters | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% |
| FIIs | 0.00% | 0.00% | 0.00% | 0.06% | 0.00% |
| DIIs | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| Public | 24.99% | 24.99% | 24.99% | 24.92% | 24.98% |
| No. of Shareholders | 12,635 | 13,126 | 18,445 | 21,150 | 22,947 |
If we look at the shareholding pattern of Artson Engineering, we do not see many changes.
Promoters
The promoters have kept their share stable at 75% for a long time. The only promoter of the company is TATA PROJECTS LIMITED. When promoters don’t sell their shares, it shows their trust in the company.
FIIs
Foreign Institutional Investors have stayed away from the company and their share is nil. Some investors invest in the company only when FIIs are present.
DIIs
Domestic investors are not interested in the company either and their presence is also negligible at only 0.01%.
Public
Rest of the shareholding lies with the public at 24.98% and it has not changed since a long time which means the general investors think that this is the right investment for the long term.
In summary there is not much to talk about in terms of shareholding. The shareholding pattern shows that both promoters and the public believe in the company. However, the presence of FIIs and DIIs would have motivated the future investors.
Artson Engineering share price target 2024
| Artson Engineering share price target | 1st | 2nd |
|---|---|---|
| 2024 | ₹ 215.45 | ₹ 218.96 |
As per our analysis, Artson Engineering should achieve a share price target of Rs 215.45 by the end of 2024.
Artson Engineering share price target 2025
| Artson Engineering share price target | 1st | 2nd |
|---|---|---|
| 2025 | ₹ 270.22 | ₹ 275.87 |
The company is working on shifting from engineering projects to shipbuilding, which is a high-profit margin business. If Artson Engineering succeeds in its plans, it should easily achieve a share price target of Rs 270.22 in 2025.
Artson Engineering share price target 2030
| Artson Engineering share price target | 1st | 2nd |
|---|---|---|
| 2030 | ₹ 425.81 | ₹ 440.11 |
As per the previous years trends, we do not expect rapid growth of Artson Engineering Ltd because the sales of the company is stagnant and it is suffering losses as well. If the company continues at this pace, Artson Engineering share price target for 2030 would be Rs 425.81.
Conclusion
Artson Engineering is facing challenges to its financial performance and balance sheet health, including expenses that need cutting back, new orders need securing and profitability increases that would benefit from reserves improvements. Investors have received solid returns despite losses at Artson so far; reserves must also be enhanced so as to build trust among stakeholders – overall the business requires improvements both financially and operationally to continue growth while upholding trust of its investors.
Disclaimer: Dear Readers, please be aware that we are not associated with SEBI (Securities and Exchange Board of India). The information found on this site should only be considered educational and should not be seen as financial advice or stock recommendations. Share price predictions should only be taken as an estimate and considered valid when there are positive market signals present; any uncertainty concerning either your company or market status won't be taken into consideration in this study. Though our informational site serves educational purposes, we cannot be held liable for any financial losses you might experience as a result of using it. Instead, it serves only to keep you up to date about the stock market and financial products so you can make better investment choices - please do your own research prior to any investment decisions being made by yourself or through third parties.