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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 522134 | NSE: ARTSONEN

Artson Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 4, 2024, 12:27 pm

Market Cap 700 Cr.
Current Price 190
High / Low220/135
Stock P/E154
Book Value 0.25
Dividend Yield0.00 %
ROCE23.2 %
ROE%
Face Value 1.00
PEG Ratio5.07

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Artson Engineering Ltd

Competitors of Artson Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Harshil Agrotech Ltd 419 Cr. 82.582.5/2.54320 10.50.00 %16.4 %13.5 % 10.0
Gujarat Toolroom Ltd 135 Cr. 11.645.9/10.81.45 6.828.64 %179 %170 % 1.00
GTV Engineering Ltd 140 Cr. 448640/29022.1 1160.00 %12.7 %13.5 % 10.0
Galaxy Agrico Exports Ltd 16.9 Cr. 62.068.2/24.0 15.10.00 %33.5 %44.8 % 10.0
GG Engineering Ltd 301 Cr. 1.902.97/1.1465.7 1.410.00 %5.90 %3.98 % 1.00
Industry Average4,674.08 Cr652.8358.64109.280.45%31.57%24.05%6.57

All Competitor Stocks of Artson Engineering Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales38.9845.1841.9246.5637.4034.0630.6529.3041.8930.1231.2424.8824.97
Expenses35.8241.2142.9645.9339.1036.7929.7136.3738.0026.4727.7021.9622.57
Operating Profit3.163.97-1.040.63-1.70-2.730.94-7.073.893.653.542.922.40
OPM %8.11%8.79%-2.48%1.35%-4.55%-8.02%3.07%-24.13%9.29%12.12%11.33%11.74%9.61%
Other Income0.460.180.030.190.050.150.010.770.020.020.020.600.06
Interest2.583.132.642.432.452.372.762.602.742.382.412.782.52
Depreciation0.280.290.360.240.290.300.290.330.350.460.690.540.63
Profit before tax0.760.73-4.01-1.85-4.39-5.25-2.10-9.230.820.830.460.20-0.69
Tax %26.32%53.42%-1.25%5.95%11.39%27.05%-5.71%8.02%-25.61%-286.75%-8.70%-560.00%-28.99%
Net Profit0.560.33-3.96-1.96-4.89-6.66-1.99-9.961.033.210.491.32-0.49
EPS in Rs0.150.09-1.07-0.53-1.32-1.80-0.54-2.700.280.870.130.36-0.13

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales597965110101132158163150173131128111
Expenses8981621069612915315214616614211499
Operating Profit-30-2344351147-111413
OPM %-51%-3%5%4%4%2%3%7%3%4%-8%11%11%
Other Income-0003693721111
Interest7534457101011101010
Depreciation2222111211122
Profit before tax-39-8-226506-5-4-2121
Tax %-0%0%0%0%-378%76%1,508%112%11%15%12%-163%
Net Profit-39-8-22271-2-1-6-5-2465
EPS in Rs-10.67-2.26-0.540.467.360.35-0.46-0.20-1.54-1.36-6.371.641.23
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)79.49%75.00%200.00%1250.00%-96.30%-300.00%50.00%-500.00%16.67%-380.00%125.00%
Change in YoY Net Profit Growth (%)0.00%-4.49%125.00%1050.00%-1346.30%-203.70%350.00%-550.00%516.67%-396.67%505.00%

Artson Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:-4%
3 Years:-5%
TTM:-18%
Compounded Profit Growth
10 Years:11%
5 Years:31%
3 Years:45%
TTM:126%
Stock Price CAGR
10 Years:18%
5 Years:43%
3 Years:49%
1 Year:22%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444444444
Reserves-59-67-70-662221-4-3-19-3
Borrowings666161632026335854535964
Other Liabilities5473691117578106961218711286
Total Liabilities647064112102110144160175141156151
Fixed Assets109744551010111217
CWIP000000000000
Investments000000000000
Other Assets54615810898105139150165129144134
Total Assets647064112102110144160175141156151

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -2111111-03-131614-4-4
Cash from Investing Activity 0-01-00-2-2-5-2-2-2-1
Cash from Financing Activity 2-10-2-4-11-4-5-87-1675
Net Cash Flow01-06-9-6-5-2621-40-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-96.00-63.00-58.00-59.00-16.00-23.00-28.00-47.00-50.00-46.00-70.00-50.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1034690202103768171155121149129
Inventory Days15128324212914816583965947245182
Days Payable275474327270423416360380459354551401
Cash Conversion Cycle-21-145561-173-175-196-213-245-187-157-91
Working Capital Days-108-139-154-84-343-1186736767123
ROCE %-125%-85%71%38%20%32%9%12%-22%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs0.00%0.00%0.00%0.00%0.00%0.06%0.06%0.00%0.00%0.00%0.00%0.00%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public24.99%24.99%24.99%24.99%24.99%24.92%24.92%24.98%24.99%24.98%24.98%24.98%
No. of Shareholders13,42018,56318,44520,30320,50221,15521,15021,81723,52622,94721,94320,811

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)1.64-6.37-1.36-1.54-0.20
Diluted EPS (Rs.)1.64-6.37-1.36-1.54-0.20
Cash EPS (Rs.)2.19-6.04-1.04-1.250.29
Book Value[Excl.RevalReserv]/Share (Rs.)0.24-19.500.130.031.40
Book Value[Incl.RevalReserv]/Share (Rs.)0.24-19.500.130.031.40
Revenue From Operations / Share (Rs.)34.7035.5946.7640.7044.15
PBDIT / Share (Rs.)3.97-2.602.051.664.89
PBIT / Share (Rs.)3.41-2.931.731.374.40
PBT / Share (Rs.)0.62-5.68-1.18-1.381.69
Net Profit / Share (Rs.)1.64-6.37-1.36-1.54-0.19
PBDIT Margin (%)11.42-7.294.384.0711.07
PBIT Margin (%)9.83-8.213.703.379.96
PBT Margin (%)1.79-15.95-2.53-3.403.81
Net Profit Margin (%)4.72-17.88-2.91-3.77-0.45
Return on Networth / Equity (%)661.270.00-1015.11-4951.00-14.28
Return on Capital Employeed (%)57.86-151.9278.0241.1565.62
Return On Assets (%)4.00-15.06-3.57-3.25-0.46
Long Term Debt / Equity (X)13.02-0.2213.8897.443.52
Total Debt / Equity (X)65.87-0.81105.46396.2911.11
Asset Turnover Ratio (%)0.830.881.100.891.07
Current Ratio (X)0.950.880.900.931.00
Quick Ratio (X)0.760.670.830.860.87
Inventory Turnover Ratio (X)1.782.896.784.643.55
Interest Coverage Ratio (X)1.42-0.940.700.601.80
Interest Coverage Ratio (Post Tax) (X)1.59-1.310.530.440.92
Enterprise Value (Cr.)577.58306.34487.79188.90129.58
EV / Net Operating Revenue (X)4.512.332.831.260.79
EV / EBITDA (X)39.45-31.9564.4230.817.18
MarketCap / Net Operating Revenue (X)4.041.902.530.960.45
Price / BV (X)565.58-3.46881.801269.3514.35
Price / Net Operating Revenue (X)4.041.902.530.960.45
EarningsYield0.01-0.09-0.01-0.03-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Artson Engineering Ltd as of October 5, 2024 is: ₹5.89

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 5, 2024, Artson Engineering Ltd is Overvalued by 96.90% compared to the current share price ₹190.00

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Artson Engineering Ltd as of October 5, 2024 is: ₹7.68

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 5, 2024, Artson Engineering Ltd is Overvalued by 95.96% compared to the current share price ₹190.00

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 30.40%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -9.25, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -128.08, which is a positive sign.
  1. The stock has a low average ROCE of -2.25%, which may not be favorable.
  2. The company has higher borrowings (51.50) compared to reserves (-23.67), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (120.00) and profit (-4.38).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Artson Engineering Ltd:
    1. Net Profit Margin: 4.72%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 57.86% (Industry Average ROCE: 31.57%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 661.27% (Industry Average ROE: 24.05%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.59
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.76
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 154 (Industry average Stock P/E: 58.64)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 65.87
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Artson Engineering Ltd. is a Public Limited Listed company incorporated on 18/09/1978 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27290MH1978PLC020644 and registration number is 020644. Currently Company is involved in the business activities of Construction of utility projects. Company’s Total Operating Revenue is Rs. 172.64 Cr. and Equity Capital is Rs. 3.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - General2nd Floor, One Boulevard, Lake Boulevard Road, Mumbai Maharashtra 400076investors@artson.net
http://www.artson.net
Management
NamePosition Held
Mr. Vinayak PaiNon Executive Chairman
Mr. Shashank JhaWholeTime Director & CEO
Mr. Deepak NatarajanNon Executive Director
Ms. Priya KherIndependent Director
Mr. Ashish KulkarniIndependent Director
Mr. Jyotisman DasguptaIndependent Director

FAQ

What is the latest fair value of Artson Engineering Ltd?

The latest fair value of Artson Engineering Ltd is ₹5.89.

What is the Market Cap of Artson Engineering Ltd?

The Market Cap of Artson Engineering Ltd is 700 Cr..

What is the current Stock Price of Artson Engineering Ltd as on 05 October 2024?

The current stock price of Artson Engineering Ltd as on 05 October 2024 is ₹190.

What is the High / Low of Artson Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Artson Engineering Ltd stocks is 220/135.

What is the Stock P/E of Artson Engineering Ltd?

The Stock P/E of Artson Engineering Ltd is 154.

What is the Book Value of Artson Engineering Ltd?

The Book Value of Artson Engineering Ltd is 0.25.

What is the Dividend Yield of Artson Engineering Ltd?

The Dividend Yield of Artson Engineering Ltd is 0.00 %.

What is the ROCE of Artson Engineering Ltd?

The ROCE of Artson Engineering Ltd is 23.2 %.

What is the ROE of Artson Engineering Ltd?

The ROE of Artson Engineering Ltd is %.

What is the Face Value of Artson Engineering Ltd?

The Face Value of Artson Engineering Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Artson Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE