Rs 19,010 lakh order book: This multibagger engineering company invests Rs 1.50 crore in business expansion!

The stock gave multibagger returns of 134 per cent from its 52-week low of Rs 62 per share.

Artson Engineering Ltd has taken a premise on leave and a license for setting up a unit for enhancing its fabrication/manufacturing capacity with 1000 MT per month at Umred, Nagpur Unit. The investment is approx. Rs 1.50 crore.

The company is building a new 7-acre facility at Parli, which is less than 50 km from the upcoming Navi Mumbai Airport and less than 70 km from the JNPT port. This proximity to Mumbai will give the company the flexibility to address demand from the Western zone with a lower cost of transportation and the added advantage of seaport proximity. The mid-term plan is to use this facility as a multimodal facility to support all SBUs (manufacturing, fabrication and shipbuilding subassemblies) while also providing the flexibility of space to pursue new business opportunities.

Earlier, the company received an order confirmation of Rs 25.19 crore from Tata Projects Ltd. The order includes the fabrication of structures for the AMNS project on a conversion basis and will be completed within 12 months from LOI.

According to the Quarterly Results, the net sales increased by 12 per cent to Rs 41.89 crore, and operating profit increased by 336 per cent to Rs 3.91 crore and the net profit increased by 120 per cent to Rs1.03 crore in Q1FY24 over Q1FY23. As of March 31, 2023, the company's order book stands at Rs 19,010 lakh.

On Wednesday, shares of Artson Engineering Ltd plunged 0.9 per cent to Rs 142.5 per share from its previous closing of Rs 143.8 with an intraday high of Rs 145 and an intraday low of Rs 139. The stock’s 52-week high is Rs 207.45 and its 52-week low is Rs 62.

Artson Engineering is an EMC contracting company founded in 1978 in Hyderabad. It provides services in pressure equipment manufacturing, bulk liquid storage farms, industrial piping, etc. The company has a market cap of over Rs 500 crore with an ROE of 115 per cent.

The stock gave multibagger returns of 134 per cent from its 52-week low of Rs 62 per share. Investors should keep an eye on this micro-cap stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.