The shares of a Micro-Cap company, specializing in providing oil and gas field services, hit a 20 percent upper circuit upon receiving a Letter of Award (LoI) from Oil and Natural Gas Corporation (ONGC) for Rs. 19.36 crore.
With a market capitalization of Rs. 105.10 crores on Wednesday, the shares of Aakash Exploration Services Limited hit a 20 percent upper circuit, making a high of Rs. 10.51 per share compared to its previous closing price of Rs. 8.76 per share.
Aakash Exploration Services Limited, engaged in providing oil and gas field services, has received a Letter of Award (LOI) from Oil and Natural Gas Corporation Limited (ONGC) for the charter hiring of a 50 MT workover rig to be deployed at ONGC’s Ahmedabad asset. The contract is for a period of three years and is valued at approximately Rs. 19.36 crore.
Financials & Others
The company’s standalone revenue declined by 16 percent from Rs. 31.28 crore to Rs. 26.14 crore in Q4FY24-25. Meanwhile, Net profit declined from Rs. 3.51 crore to Rs. 0.28 crore during the same period.
The company maintains a low debt-to-equity ratio of 0.29, indicating strong financial health with minimal reliance on debt. Its current assets exceed current liabilities, reflecting good liquidity. Additionally, promoters hold over 65 percent of the company’s shares, signifying a strong commitment and control.
Aakash Exploration Services Limited (AESL) is a leading, ISO-certified company based in Ahmedabad, Gujarat, specializing in oil and gas field services. With over 900 employees, AESL supplies mobile workover rigs, hot oil units, compressors, cranes, and other equipment, and also provides manpower and maintenance support.
It is providing Oil and Gas field Services to M/S Oil & Natural Gas Corporation Ltd (A Govt. of India Company), Ahmedabad, Mehsana and Hazira Projects since last 25 years and also providing similar services to private oil field operators namely GSPCL, Cairn, Essar, Great Eastern Energy, IOC, Niko, OIL, Price Petroleum etc.
The company serves a distinguished set of marquee clients in the oil and gas sector, including PRIZE Petroleum, Niko Resources Ltd, GAIL, GSPC, Oil India Ltd, Schlumberger, Halliburton, Essar, Vedanta, ONGC, Reliance, Indian Oil Corporation Ltd., and Hindustan Oil Exploration Company.
Written by Sridhar J
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