1. At a Glance
Artson Engineering Ltd, the lesser-known Tata kid, just posted a microscopic ₹21.59 lakh profit in Q1 FY26. But before you chuckle and move on — hold up. This company builds tankages, pipelines, and mechanical systems for mega industries (including defence, shipbuilding). It’s shifting gears toward manufacturing and riding on Tata Projects Ltd. Let’s dissect this mini-monster.
2. Introduction with Hook
Imagine a company that was once the silent backbencher in the Tata classroom, suddenly walking up to the board and writing “Tankage King” in bold. That’s Artson for you.
- Q1 FY26 Net Profit: ₹21.59 lakh (from ₹60 lakh last quarter, but hey, profit is profit)
- Promoter Holding: A rock-solid 75% (Tata Projects isn’t playing around)
- ROE: A bonkers 125%… but wait till we explain why
Is Artson a late bloomer or just a Tata side hustle?
3. Business Model (WTF Do They Even Do?)
Artson Engineering Ltd designs, fabricates, and erects heavy mechanical equipment — mainly for oil, gas, petrochemicals, and infrastructure. Current focus:
- Structural fabrication
- Shipbuilding
- Tankages, piping, and mechanical packages
- Works closely with Tata Projects Ltd (parent) on EPC assignments
The company paused third-party EPC bidding. Why? Because TPL brings enough juicy orders in-house. It’s now in “strategic subcontractor” mode.
4. Financials Overview
Last 5-Year Sales & Profits (₹ Cr)
| Year | Sales | Net Profit | OPM % |
|---|---|---|---|
| FY21 | 150 | -6 | 3% |
| FY22 | 173 | -5 | 4% |
| FY23 | 131 | -24 | -8% |
| FY24 | 128 | +6 | 11% |
| FY25 | 114 | +3 | -2% |
Key Takeaways:
- Volatile sales, but finally reached profitability
- FY24 saw a rare 11% OPM
- OPM for Q1 FY26 stands at 7.47% — fragile but positive
5. Valuation
Let’s get nerdy with the math:
- Market Cap: ₹684 Cr
- TTM EPS: ₹1.14
- P/E: 162x (LOL, but wait)
- Book Value: ₹1.27 → Price/Book = 146x (bruh)
Artson isn’t a value investor’s dream… but maybe it’s a “strategic turnaround” story?
Fair Value Range (Edu-estimated):
- Conservative: ₹50–70 (based on long-term avg profits, 25x P/E)
- Optimistic: ₹120–150 (if Tata Projects pumps serious volume)
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Profit: ₹21.59 lakh — barely made it, but better than a loss
- TPL Dependency: 90% of orders are internal. Tata Projects is a double-edged sword
- Shift to Manufacturing: Less EPC, more steel fab and shipbuilding
- Credit Rating (2025): IND A+/A1+ — decent, stable outlook
Trigger Alert:
- Any rise in Tata infra or refinery capex = Artson boom
- Govt defence + shipyard contracts = cherry on top
7. Balance Sheet
As of FY25 (₹ Cr)
| Metric | Value |
|---|---|
| Equity Capital | 4 |
| Reserves | 1 |
| Borrowings | 49 |
| Other Liabilities | 121 |
| Total Assets | 175 |
| Fixed Assets | 14 |
| Debtors (Receivables) | Very High – 216 Days |
Notable:
- Networth finally positive
- Debt is manageable, but debtor days are scary
8. Cash Flow – Sab Number Game Hai
Cash Flow Snapshot (₹ Cr)
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | -4 | -2 | +7 | 0 |
| FY24 | -4 | -1 | +5 | 0 |
| FY25 | +20 | +7 | -23 | +5 |
Translation:
- Operations finally generated cash in FY25
- Positive cash flow post years of pain
- Still no dividend… no surprise
9. Ratios – Sexy or Stressy?
| Metric | FY25 Value | Verdict |
|---|---|---|
| ROCE | 25% | Surprisingly Sexy |
| ROE | 125% | Ridiculously inflated due to low equity base |
| Debtor Days | 216 | Red Flag |
| OPM | -2% (FY25) | Meh |
| Interest Coverage | ~1.1x | Weak sauce |
10. P&L Breakdown – Show Me the Money
Q1 FY26 (₹ Cr)
| Line Item | Value |
|---|---|
| Revenue | 44.74 |
| Operating Profit | 3.34 |
| OPM % | 7.47% |
| Other Income | 0.01 |
| Interest | 2.31 |
| Depreciation | 0.57 |
| Profit Before Tax | 0.47 |
| Net Profit | 0.22 |
Key Takeaway:
It’s barely breathing, but it’s breathing nonetheless.
11. Peer Comparison
| Company | CMP (₹) | P/E | MCap (Cr) | ROCE % | OPM % |
|---|---|---|---|---|---|
| Kaynes Tech | 5783 | 131 | 38703 | 14.4 | 15.1 |
| Jyoti CNC | 1057 | 74 | 24047 | 24.4 | 27.0 |
| Tega Industries | 1996 | 66 | 13278 | 17.7 | 20.7 |
| Artson | 185 | 162 | 684 | 24.6 | 7.5 |
Reality Check:
- Artson is the “smallest big player”
- It’s the only one with sub-₹1 Book Value
12. Miscellaneous – Shareholding, Promoters
| Category | Holding (%) |
|---|---|
| Promoters | 75.00 |
| FIIs | 0.00 |
| DIIs | 0.01 |
| Public | 24.99 |
| Shareholders | 18,902 |
Verdict: Tata Projects isn’t selling. No FII/DII interest yet. Waiting for a big trigger?
13. EduInvesting Verdict™
Artson is a bit like that quiet but genius IIT junior — mostly unknown, underperforming historically, but showing signs of strategic brilliance under a heavyweight mentor (TPL). It’s low on liquidity, dangerously valued, and operating with razor-thin profits. But there’s potential.
If Tata Projects starts feeding it more contracts — especially in shipbuilding or defence — this could transform into a ₹1000 Cr+ story.
Till then, it’s a “watch from a distance” stock — like a slow cooker dish… might just surprise you when you least expect it.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Artson Engineering Ltd, Tata Projects, EPC, Shipbuilding, Capital Goods, Infra Stocks, Q1 FY26
