Tata Group's Small Cap Subsidiary Rises Above 3% On Expansion Of Fabrication Capacity

Tata Group's subsidiary, Artson Engineering Ltd. on Thursday rose more than 3% after the company on September 20 informed the stock exchange that the company plans to enhance its fabrication capacity.

"The Company has taken a premise on leave and license for setting up a Unit for enhancing its fabrication/manufacturing capacity. The premise is located at Survey No 5, Hissa No. - 1a, 1b, 1c, Village Parli, Taluka - Sudhagad, Dist. Raigad, 410205, Maharashtra," the company said in a filing.

The company's current average structure fabrication capacity is 1000 MT per month at the Umred, Nagpur Unit, with capacity utilisation ranging from 75% to 80%.

The proposed capacity increase is an average structure fabrication work of 700 MT per month at a cost of about Rs. 1.50 Crores for the purchase/lease of P & M and facility.

Part investment will be through the advance payment to be received from the order which is to be executed from this additional facility and balance through available credit limits / non-fund limits, the company stated in a filing.

According to the filing, "The new 7-acre facility at Parli is less than 50 kms from the upcoming Navi Mumbai Airport and less than 70 kms away from the prolific JNPT port. Being close to Mumbai, gives the Company the flexibility to address demand from Western zone with a lower cost of transportation, with added advantage of seaport proximity."

Moreover, "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".

Artson Engineering Ltd's shares currently trading at Rs 148 apiece, up 3.86% from its previous close on the BSE. Its 52-week high is Rs 207.45 apiece and 52-week low is Rs 62 apiece, respectively.

The stock surged 3.31% In 1 week. It declined 4.59% in 1 month. It gave robust return of 91.82%% in 3 months and multibagger return of 117.44% in 6 months. It gained 47.10% in 1 year. It gave 212.32% multibagger return in 2 years. It gave 430.50% in 3 years and 155.73% in 5 years, respectively. Its market capitalisation is Rs 546.42 Crore.