Shares of this multibagger stock under the ‘small-cap’ category jumped around 3 percent in Tuesday’s trading session after the company secured a work order worth Rs 81 crores from Oil India Limited (OIL). In the past month, the company’s stock gained nearly 20 percent for its holders.
With a market capitalization of Rs 1,939.52 crores, the stocks of Deep Industries Limited started their trading session on Tuesday at Rs 302.50 and currently trade at Rs 303.05, gaining approximately 3 percent compared to the previous closing levels of Rs 293.85 apiece.
Such bullish share price movements were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of a work order from “Oil India Limited” (OIL) worth Rs 81 crores.
The work order mentioned above pertains to the charter hiring of 1,000 HP Mobile Rig Packages for two years (with the provision of an extension for one year) for Workover & Drilling jobs in Tripura.
Keeping a purview of the last one year, the company’s stock has delivered multibagger returns of approximately 102 percent for its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.02 lakhs.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed marginal movements in opposing directions.
The former, on one end, rose from Rs 101 crores during Q2FY24 to Rs 105 crores during Q3FY24, and the latter, on the other end, moved down slightly from Rs 30 crores to Rs 28 crores.
According to the latest presentations, the company’s outstanding order book stands at Rs 1,200 crores, indicating a YoY increase of approximately 25 percent. During the quarter, the company successfully secured orders totaling Rs 97 crores from ONGC and Vedanta Limited.
The mining company is also working on bidding for tenders in the offshore space in ‘Dolphin Offshore’ with plans to bid in the next quarter. Moreover, the company is exploring opportunities in the ‘Hydrogen’ sector for compressor applications, focusing on development in RAAS Equipment Private Limited, a subsidiary company of Deep Industries.
Founded in 1991, Deep Industries Limited is a diversified oil & gas company providing services of oil & gas exploration, gas dehydration, drilling, air & gas compression, etc. It has also diversified into providing drilling and work-over services to exploration as well as production players through its fleet of rigs.
Written by Amit Madnani
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