Tuesday, December 18, 2007

Artson Eng...it is still a buy..........even at Rs 91.40/-...

I have been recommending Artson Eng at mmb and at some other Forum and Yahoo Gr..from Rs 22-23…
The takeover of the management of Artson Eng by Tata Project was there since long and it was already announced at bse site since long….I was tracking this co since then and was bullish from there onwards and hence gave a buy call at mmb and other places very very early…..People used to ask me that promoters stake is less around 16% and that is a negative but I was banking on Tata's takeover…more over Artson Eng was run by technocrats who has working experinace with L&T in their early years after completing educations and that was another bullish factor I noted in Artson Eng..
Well, today I read an article in DNAindia and after reading that I am of the opinion that Artson Eng is still a buy at this level of Rs 91…. Tata Project a sister concern of Tata Power having already orders worth Rs 900 cr in hand and bidding for $2 bn,means Rs 8000 cr contract , where Artson Eng will be also a partner , seems that Artson Eng is still a buy at this level…Artson Eng is now on a high growth path...
It seems to me that local MF's will take stake at over Rs 200 and FII's will take stake at over Rs 300 which I have already written somewhere else…..
Artson Eng
Now I am pasting here what I read at dnaindia:
MUMBAI: In the midst of making a couple of billion order bids for global businesses, this acquisition may seem puny but strategic in comparison for the Tata group.
Tata Projects, a closely held company from the Tata group, is acquiring a majority stake in Artson Engineering, a company which is coming out of the BIFR fold.
The investment in Artson will enable Tata Projects to make its presence felt in the hyper segment of engineering, procurement and construction activity within the greenfield power, petroleum, petrochemicals and fertilisers space.
“We are yet to receive the BIFR order. The moment it comes, we’ll inform the stock exchanges,” an Artson official said declining to give more details on the Tata Projects investment. The order is expected in a fortnight, a source said.
“It’s a win-win situation,” the source added. Artson has two veteran project managers at the helm.
N K Jagasia, chairman and managing director and P S Chopde, director, who have promoted Artson.
Between the two, Jagasia and Chopde have over 30 years’ experience in the field. They had resigned from Hindustan Petroleum to promote Artson. One of the conditions in the agreement between Tata Projects and Artson, sources said, is that the two would continue to lead the company.
Further lending credence to the impending strategic-tie-up, Artson and Tata Projects are said to be already working together in Fujairah, UAE, for ENOC, a leading oil company in the Emirates.
The Tatas are themselves in the midst of developing several big-ticket projects in the power and steel sectors. However, they have given their subsidiaries a free hand in scouting for new projects, to make them globally competitive.
Artson has experience in the oil & gas, power, fertilisers and food processing sectors. At the time of the establishment in 1978, the refineries were using Bombay High Crude, which gave a waxy product called Low Sulphur Heavy Stock (LSHS) as residual fuel oil.
LSHS had very high pour point. Artson did pioneering work and developed systems to convert the existing fuel firing systems of industry to make it suitable to use LSHS.
Artson has successfully commissioned, on a turnkey basis, more than hundred such fuel systems in the country. This led to AEL being one of the foremost companies in the country, specialising in petroleum storage and handling systems. This expertise was then expanded and AEL executed overseas projects.
Artson went on developing its capabilities in multi disciplinary construction for the Hydrocarbon Process Industry and is one of the leading design, engineering, procurement and construction companies with a sound manufacturing base.
Tata Projects is also an EPC company with operations in power generation, transmission and distribution, industrial infrastructure, oil, gas and hydrocarbons, and quality services.


  1. Purchased it on rajeevs reco but I exited this counter too early.will have to getback into this is gradual quantities.

    Thanks raju bhai.


  2. I have been following your recommendations for last about two years. They have been absolutely fantastic. I am amazed at the work you are doing for so many people. My heartfelt best wishes for you.

    Ajay Kumar

  3. hi nakul,
    had bought artson at 41 on ur reccommendation but sold allmost whole holding in yesterdays panic @87,am regretting that now.any will keep looking for oppertunity to enter again.still holding flex foods,marson,ttml&jayaswal too .am planning to enter sks logistics am so confident about ur picks that i dont think twice before investing in them.thanks a lot.raima

  4. Hi Raima,
    It is really really sad to know that you sold all Artson Eng in Monday's panic..
    I have always written that sell only half the stock and hold the rest FREE...that advice I have always given at mmb...
    The reason for adviceing that is ,I know my stocks are multibaggers,as I know how is the company and how it will grow.
    Never never sell , 100% in any of my stocks, keep even 10-20% ..sometimes they give multiple returns even after a year or two..
    Hope you buy again Artson as early as possible..buy even 100-200....again

  5. Itis true100000000% what you stated..{The reason for adviceing that is ,I know my stocks are multibaggers,as I know how is the company and how it will grow.
    Never never sell , 100% in any of my stocks, keep even 10-20% ..sometimes they give multiple returns even after a year or two..
    Hope you buy again Artson as early as possible..buy even 100-200....again
    You are god father to many small investors.Yes, I have seen many "Eagles" with their sweet words made us beggers and cornerd all the life long savings.
    you are different and resqueing many to a new destination where we can see "There is a different kingdom with exititement"
    Thanks a lot for your Divine service and practising "Whomsoever you serve, think that you are serving God. That is true penance and meditation. - Baba "

  6. Nakul,

    How are you?Thanks for posting this.I am just following your valuable tips from last month.(Since I found you lately).I got netflier finco last week.Missed Time techno plast(It's Really Firing)I will try to get into SKS soon.How is your USA trip planning going on?.I am in USA (Near Miami-Florida)Working in IT Field)


  7. Cheers Rajeev...
    u r right on target, when u r still recommending Artson as a buy..totally agree with ur view..

  8. I had purchased and still holding artson, kirloskar ferrous, flex flood, on the reco of rajeeviji

    Yesterday bgt "netflier"

    "Not to mention any thanks for that, cause u r beyond all this things."


  9. Dear Rajeeviji,

    Purchased and still holding
    Artson, kirloskar ferrous, flex foods,

    Yesterday bgt “netflier”

    “Wont mention any thanks or precarious words as your are well ahead of all this things for small investors”


  10. Thanx a lot Raju bhai for sharing such hardworked reseach/analysis on Artson Eng.
    This showsyour grereatness
    /kindness in this modern matrial world that u r sharing all the info/knowledge u have for the small investor like us without any expectation. keep it up.

  11. I think the much awaited BIRF is confirmed now. I have read that somewhere in the news. Seems the stock is again gaining momentum.


  12. Rajubhai after todays announcement what is your view on Artson Eng...

    Reduction of face value to 1 Rs.
    That means scrip has to trade at 129 Rs post reduction, to preserve our capital (as our no of shares will remain same.
    Suppose we are holding 100 share post capital reduction also we will be holding 100 shares only.

    Do you think Artson to trade at 129 Rs with face value as 1 Rs and equity as 12 cr (post equity placement of 2.76 cr shares to Tata Project.

    And if trades at 129 Rs its market cap will be 1550 cr. Pls correct me if I am going wrong somewhere.

  13. Dear Sir,

    The writing off of the losses is fine.
    But reducing the par value from 10 to 1, are the company looking at making the shares trade at cheaper prices...maybe then offer a buyback of shares at cheaper prices...

    doesn't it mean we should hold on for a longer time horizon?

    kindly guide us.


  14. Dear Rajat,

    Your calculation can be corrected in this way---present number of total shares 9230000 + 27690000 shares to Tata Project= toatal shares post issue 36920000 multiply by 129 = 4762680000
    ie 476.27 crores ,correct if I am wrong.You erred in calculating the present capital at 9.23 crore which will stand reduced to 92.3 lakhs with reduction in face value to Rs.1. NINA

  15. Hi Nina,
    I am also of the same view that what you wrote to Rajat.
    BTW, are you the same who use to come at mmb as nina?
    Surprised and glad to see you here...
    Will be happy for some good discussion....

  16. Yes Rajeev, same.Not writting much but I always read your views(saved your MMB link in my favourites ) and now your blog.You are doing a great and selfless service to small investors.Kindly keep it up. THANK AND REGARDS. NINA

  17. Dear Nakul,
    I bought 2k shares of artson at 110. I'm really really worried that it just goin down day by day. What should i do now? should i wait? Whats the target of artson in 2008? I'm ready to wait this entire year if im sure that artson will come up. Please reply
    Ariff Abdul.T

  18. fundamental of artson is good if u hold for an year u will get atleast 50% profit. but it was better if u would have switched to movementum stock two days before, like ispat,rpl,rnrl,reli energyetc. u would have recovered. Like me i heavily bought allied computer then i sold it and switch to ispat at same price share now i am about to recover within three days. Take ur own decesion this just sharing of knowlege.


  19. Dear Ahmed,
    Thanks for your encouraging words.Even i had that idea (To buy ttml or ispat or ifci or reliance naturals) but before two days, i saw in NDTV , all Midcaps might fall again and its better to stay away from it. So thats why i didnt get into those stocks :(

  20. Hi Ariff,
    If you have getin Artson at 110, no need to worry.
    It will be back to normal but may take time to come back to 110 and cross it even.
    Ariff,when readers like you writes such things, I gets disturbed.It becomes then my personal responsibility to take you our from that counter without any loss...
    That puts lots of pressure on me as all knows that thhis is not PMS(Portfolio Managenmenet services) nor this is my whole time business nor I take any call and tell others to buy the stock I recomend here, before I write it here nor do I buy any stocks before I write and try to get ST profit as I have seen usually the stock I recomend goes up immidiately.
    But have never done that in my life.
    But I again request all memebers that please do not write me at what price you have bought and don't ask me that it is going down and now what I have to do with this stock.
    Going UP and DOWN is part of stock this game and if one is not able to digest then please do not come in stock market to invest....
    I strictly tell to everyone...
    "PLEASE DO NOT COME TO STOCK MARKET WITH THE MONEY YOU NEED FOR 12 TO 24 MONTHS.....ONLY INVEST THAT MONEY IF YOU DO NOT NEED FOR 12-24 MONTHS.it may happen that you may have to wait even longer then that hence you should be able to remain invested as if you have bought KISAN VIKAS PATRA OR NATIONAL SAVINGS CERTIFICATE...

  21. Dear Rajeev,
    I'm very sorry to disturb u. its just out of curiousity i posted that comment. and i started to read ur postings only bfore a month. and thank u so much for ur advice. and i came to know from ur posting that ur movin to abroad. wish u the very best and may victory embrace u thru out ur life. Have a nice time brother,
    Ariff Abdul.T

  22. Hi all,
    Can anybody tel me why this script is suspended from bse. i searched but didn't found.


  23. Hi Ahmed,
    Till Feb 7, Artson is in no trading because of capital reduction.
    check out the BSE notices around jan 30 or so.


  24. Dear all,
    I received the certificate of artson today but the share is not listed yet.Script is still suspended. also in certificate it is mention that face value is reduced from 10 to 1 RS but number of share remains the same i didn't understand it if they reduced the face value from 10 to 1 they should also have to give 1:10 shares otherwise share holder will be totally in loss.

    So what u people think