Artemis Electricals and Projects Limited

Industrials — Electrical Equipment & Parts · NSE

₹15.06+₹0.03 (+0.20%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

The 60-second version of Artemis Electricals and Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Artemis Electricals and Projects Limited engages in the manufacture and sale of LED lighting and allied products in India. It provides LED focus lights, plastic body panel lights, surface lights, down lights, and AC street lights, as well as flashlights and solar lights.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees16

Annual revenue₹81 Cr

How does it make money?

Turns over ₹81 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹5.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +38% while net margin moved +0% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect+0%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.43 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.3x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 50% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -50%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.9x

PEG

3.84

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 94% over 3 years.
Cash generation is improving
Free cash flow is up 199% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.80x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 94% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 50% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.0% to 16.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.80x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 11.4% CAGR
Latest reported year was -17.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 6 neutral · 3 weak

Market Cap

₹378 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.34

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

12.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.80x

High

High leverage

Revenue Growth (YoY)

-17.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

0.07%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.8%

Average

Average margins

Net Margin

11.2%

Good

Strong bottom-line conversion

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.43

High swing

Swings more than the market in both directions

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.3 / 15.6

Bearish alignment (short < long)

RSI (14)

35.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹58 Cr	₹41 Cr	₹72 Cr	₹81 Cr	+11.4%
EBITDA	₹11 Cr	₹8 Cr	₹12 Cr	₹13 Cr	+5.9%
EBITDA Margin	19.0%	19.0%	16.2%	16.3%	—
PAT (Net Profit)	₹6 Cr	₹4 Cr	₹8 Cr	₹9 Cr	+11.5%
EPS	₹0.25	₹0.15	₹0.3	₹0.35	+11.9%
ROE	8.3%	5.0%	8.8%	9.2%	—
ROCE	11.6%	7.7%	11.8%	12.4%	—
Total Debt	₹28 Cr	₹12 Cr	₹2 Cr	₹2 Cr	-60.6%
Free Cash Flow	₹5 Cr	₹17 Cr	₹11 Cr	₹14 Cr	+44.1%

🟢 Revenue has grown at 11.4% a year over 3 years.

🟢 EBITDA has grown at 5.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.0% to 16.3% over 3 years (-2.7 pts).

🟢 PAT (Net Profit) has grown at 11.5% a year over 3 years.

🟢 EPS has grown at 11.9% a year over 3 years.

🟡 ROE has held roughly flat at 9.2% over 3 years.

🟡 ROCE has held roughly flat at 12.4% over 3 years.

🟢 Total Debt has shrunk at 60.6% a year over 3 years.

🟢 Free Cash Flow has grown at 44.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹142 Cr

Total Liabilities

₹48 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

95.8%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

23 Oct 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Artemis Electricals declares ₹0.006 per share interim dividend for FY26

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Artemis Electricals and Projects Limited (AEPL.NS) valuation measures and financial statistics

Yahoo Finance Australia, 15 Oct

Artemis Electricals & Projects Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Artemis Electricals And Projects Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Artemis Electricals And Projects Share Price Rises 13.94%

Univest, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

AEPL Stock Price and Chart — NSE:AEPL

TradingView, 12 Mar

Watch Items

Revenue growth is negative (-17.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑