Shares of this small-cap oil stock zoomed up to 12 percent today after receiving an order to provide Drilling Rigs and equipment. The stock has gained over 14 percent keeping a horizon of one month.
With a market capitalization of Rs 1,300 crores, the stocks of Deep Industries Limited are currently trading at Rs 207. The scrip witnessed an intra-day high of Rs 219.40, also marked as the fresh 52-week high price, indicating a gain of around 12 percent as compared to the previous closing price of Rs 196.15.
Keeping a purview of one year, the scrip has delivered multibagger returns of 117 percent meaning a 1 Lakh investment into the stock would have converted to Rs 2.17 Lakhs within the above-mentioned period.
The surge in the stock price is observed after the company, through a regulatory filing with the BSE dated 12th July 2023, informed that it received a Letter of Award from Oil and Natural Gas Corporation Limited.
The contract is pertaining to the provision of Drilling Rigs and Equipment worth approximately Rs 130 crores. The same is to be executed within a period of three years from the date of commencement of the contract
A glance at the consolidated financials leads to an observation regarding an increase in the operating revenues and net profits with the former increasing from Rs 321 crores during FY21-22 to Rs 341 crores in FY22-23, and, the latter moving from Rs 72 crores to Rs 125 crores exhibiting a gain of 74 percent.
Deep Industries Limited, India’s natural gas compression services provider, conducts business activities comprising gas dehydration, air and gas compression, drilling, etc. The company diversified its services by providing drilling services to production and exploration companies with the help of its fleet of Rigs.
Written by Amit Madnani
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