Current Rating and Its Implications
The 'Sell' rating assigned to Artemis Electricals & Projects Ltd indicates a cautious stance for investors. This recommendation suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should consider this rating as a signal to review their exposure to the stock carefully, weighing the risks against potential rewards. The rating was revised on 25 Nov 2025, reflecting a reassessment of the company's prospects based on evolving market and company-specific factors.
How Artemis Electricals & Projects Ltd Looks Today
As of 28 December 2025, Artemis Electricals & Projects Ltd exhibits a mixed financial profile. The company operates within the Other Electrical Equipment sector and is classified as a microcap, which often entails higher volatility and liquidity considerations for investors.
Quality Assessment
The quality grade for Artemis Electricals & Projects Ltd is assessed as average. Over the past five years, the company has demonstrated modest growth, with net sales increasing at an annualised rate of 9.25% and operating profit growing at 4.28% annually. While these figures indicate steady expansion, they fall short of the robust growth rates typically favoured by investors seeking high-quality businesses. The return on equity (ROE) stands at 12.5%, which is reasonable but not exceptional, suggesting moderate efficiency in generating shareholder returns.
Valuation Considerations
Valuation is a critical factor underpinning the current rating. Artemis Electricals & Projects Ltd is considered very expensive, trading at a price-to-book (P/B) ratio of 5.8. This elevated valuation implies that the market has priced in significant growth expectations. However, the stock is currently trading at a discount relative to its peers' historical valuations, which may reflect market scepticism about the sustainability of its earnings or growth prospects. The price-earnings-to-growth (PEG) ratio is notably low at 0.2, indicating that despite the high P/B, the stock's price relative to earnings growth is attractive. This discrepancy suggests a complex valuation scenario where investors must carefully analyse underlying fundamentals.
Financial Trend Analysis
The financial trend for Artemis Electricals & Projects Ltd is very positive. Despite the stock's recent price weakness, the company has reported a remarkable 271.2% increase in profits over the past year. This surge in profitability contrasts sharply with the stock's negative returns, which stand at -26.89% over the same period. Such divergence may indicate market concerns about the sustainability of profit growth or other risk factors not immediately apparent from headline figures.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Artemis Electricals & Projects Ltd is bearish. The stock has underperformed the broader market significantly over the past year, with a 1-year return of -26.89% compared to the BSE500 index's positive return of 5.76%. Shorter-term trends also reflect weakness, with declines of 6.81% over one month and 15.52% over three months. This downward momentum suggests that market sentiment remains subdued, and technical indicators may be signalling further downside or consolidation phases ahead.
Market Participation and Liquidity
Despite the company's size and recent profit growth, domestic mutual funds hold no stake in Artemis Electricals & Projects Ltd. This absence of institutional ownership could indicate a lack of confidence or interest from professional investors, who typically conduct thorough due diligence before committing capital. The microcap status of the company may contribute to limited liquidity and higher volatility, factors that investors should consider when evaluating the stock.
Summary for Investors
In summary, Artemis Electricals & Projects Ltd's 'Sell' rating reflects a combination of factors. While the company shows very positive financial trends with strong profit growth, its average quality, very expensive valuation, and bearish technical outlook present significant challenges. The stock's underperformance relative to the market and lack of institutional backing further reinforce the cautious stance. Investors should carefully weigh these elements against their risk tolerance and investment horizon before considering exposure to this stock.
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Performance Metrics at a Glance
As of 28 December 2025, Artemis Electricals & Projects Ltd's stock price has experienced notable declines across multiple timeframes: a 1-day gain of 0.34% is overshadowed by losses of 0.95% over one week, 6.81% over one month, 15.52% over three months, 21.15% over six months, and a year-to-date decline of 22.39%. The one-year return stands at -26.89%, highlighting significant underperformance relative to the broader market.
Growth and Profitability Insights
The company’s net sales have grown at a modest annual rate of 9.25% over the last five years, while operating profit has increased at a slower pace of 4.28%. Despite this, the recent surge in profits by 271.2% over the past year is a striking development, suggesting operational improvements or one-off gains. However, investors should remain cautious given the stock’s valuation and technical signals.
Valuation in Context
With a price-to-book ratio of 5.8, Artemis Electricals & Projects Ltd is trading at a premium that may not be justified by its growth profile. The PEG ratio of 0.2, however, indicates that the stock price is low relative to earnings growth, presenting a valuation paradox. This complexity requires investors to delve deeper into the company’s fundamentals and market conditions before making investment decisions.
Institutional Interest and Market Sentiment
The absence of domestic mutual fund holdings suggests limited institutional confidence. Given that mutual funds often conduct extensive research and favour companies with strong fundamentals and growth prospects, their lack of participation may signal concerns about the stock’s risk profile or valuation.
Conclusion
Artemis Electricals & Projects Ltd’s current 'Sell' rating by MarketsMOJO reflects a nuanced picture. While the company demonstrates encouraging profit growth and a reasonable return on equity, the very expensive valuation, average quality, bearish technical outlook, and lack of institutional support weigh heavily on its investment appeal. Investors should approach this stock with caution, considering both the risks and opportunities presented by its current financial and market position.
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