Artson Eng.......call given by others as well......!

Friends,
I just came through this letter wherein a call for Artson Eng was given.
I leave to my readers how much they feel it is copied from our blog........ Maybe I am not doing the right thing.....trying to belittle someone.But let me clear my stand here. I am not trying to do anything like that.I am proud about myself that someone is looking at my blog and taking something out from it...............that's all......Let the world know that our blog is no mean less by any analyst who works for Big Brokerage House or working for any FII's ,wherein they earns millions of dollars as salary..........


So far, the .......................newsletter has been discussing investment ideas that have exhibited robust growth in the recent past. We have been looking for companies that enjoy a good chance of doing well across market cycles.
As investors for the long term we try to stay away from scripts that change like fashions. Still, one cannot resist the temptation of digging up the dirt in search of gems that turn out to be hugely profitable in future.
Obviously one cannot commit a large chunk of his or her investments to such stocks, but still hold enoughto let the portfolio soar high if and when its fortunes reverse.
One such gem we have come across is Artson Engineering Ltd, a sick company taken over by Tata Projects in 2008. Set up technocrats with experience in the field of petroleum refining, AEL has been in thebusiness of setting up petroleum storage and handling systems.
The company turned sick some years ago after it failed to recover dues from Essar over their ill-fated refinery at Jamnagar. Despite being unable to take up projects due to nonavailability of funding fromfinancial institutions, AEL boasted an impressive client list including Indian Oil Corporation, HPCL, IPCL,GAIL, Reliance Industries, BARC, etc.
AEL’s equipment supply business also managed orders from major power equipment suppliers likeBHEL, Siemens, ABB, Alstom and others.
Last year, Tata Projects took over AEL under a debt restructuring and rehabilitation scheme proposed by BIFR and infused fresh capital into it.
Having taken control of AEL, Tata Projects have retained members of its erstwhile management to ensuresmooth transition of operations.
Investment Rationale
The closely-held Tata Projects expects a number of advantages following the takeover of AEL. TataProjects which also has a joint venture with Engineers India Ltd (EIL) says it enjoys a number of synergies with AEL. Tata Projects is in the business of providing infrastructure services such as Balance of Plants forpower projects. It is also in the business of building blast furnaces for steel plants. AEL’s performance has also seen a quantum leap since its takeover. The June FY10 quarter saw the company’s turnover touch Rs 25.63 cr. as against Rs 7.47 cr. The year before. AEL’s net profit during the same period touched Rs 45 lakhs as against a loss of Rs 1.32 cr.in the corresponding period. On the other hand for the whole of FY08, AEL reported a loss of Rs 4.86 cr. on a turnover of Rs 32 cr. According to analysts tracking the company, AEL is expected to end the current financial year with a turnover
of between Rs 170 to Rs 200 cr. AEL’s management has indicated that it would aggressively pitch for orders in the coming months from various private and public sector oil companies. Its AEL’s order book hasincreased with orders worth nearly Rs 250 cr. in its kitty. Some of these include construction of 4 Crude oil.
Storage Tanks at Shri Guru Gobind Singh Refinery – a project being set up at Bhatinda. The estimatedcontract value of the order is Rs. 36.70 cr.
Earlier this year AEL received another order worth Rs 191.70 cr. from the same customer construction of Intermediate and Product Storage Tanks. Execution of the orders has already commenced, according tothe company. Another order is from Kuwait’s
Alghanim International General Trading and Contracting Co to construct 62 kms of pipe line at a cost of approximately Rs 17 cr. The project is expected to be completed by January 2010. Indian Oil and Cairn have placed orders worth Rs 22 cr. each.Management has indicated that the company would be net worth positive in the current financial year andwipe out accumulated losses worth Rs 17 cr. by FY11. The company will also under take capital expenses to the tune of Rs 5 cr. in the current financial year.