Shares of this multibagger oil stock under the ‘small-cap’ category hit the 5 percent upper circuit after the company bagged an order worth Rs 250 crores from a subsidiary company of Cola India Limited.
With a market capitalization of Rs 1,228.89 crores, the stocks of Asian Energy Services Limited started their trading session on Wednesday hitting its 5 percent upper circuit at Rs 326.10, and are currently trading at the same share price level.
Such sharp stock price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of an order from ‘Central Coalfields Limited’, a subsidiary company of Coal India Limited, for a consideration of Rs 250 crores (inclusive of taxes).
The order comprises planning, design, engineering, construction, fabrication, erection, supply, installation, testing, trial run, and commissioning of a ‘Coal Handling Plant’. The order also consists SILO loading at KARO OCP consisting of various civil, structural, electrical, and mechanical works and operation & maintenance of the plant for five years.
We are well positioned to partake in the ongoing upgradation and modernization of India’s energy infrastructure and are on the lookout for more project awards in the coming months. These projects will further reinforce the bedrock of AESL’s order book, which currently stands at approximately Rs 1200 CR, and provide revenue visibility for FY25 and beyond.”, added Mr. Kapil Garg, MD of Asian Energy Services Limited on the order win.
During the recent financial quarters, the company’s basic business parameters such as operating revenues and after-tax profits showed positive movements. The former rose from Rs 45 crores during Q2FY24 to Rs 94 crores during Q3FY24, and the latter, keeping the timeframe the same, took a shift drastically from Rs 68 lakhs to Rs 13 crores.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of around 156 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.56 lakhs.
As per the recent presentations, the company gave an update on its total order book size with the ‘Mining Services’ segment having an order value of Rs 337 crores, attributing to 41
percent of the total order book. Moreover, the ‘Oil & Gas services’ segment has an order value of Rs 495 crores, attributing to the remaining 59 percent of the total order book.
Incorporated in 1992, Asian Energy Services Limited is engaged in the business of providing a wide range of services to energy and mineral sectors within as well as outside India. The company offers seismic services, including 2D/3D land seismic acquisition, on-site data processing, transition zone acquisition, etc.
Written by Amit Madnani
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