Shares of this multibagger stock under the ‘small-cap’ category rose up to 9 percent on Monday after securing a domestic order from ONGC worth Rs 108 crores.
With a market capitalization of Rs 1,712.64 crores, the stocks of Deep Industries Limited started their trading session on Monday at Rs 261.90 and currently trade at Rs 267.60. The company’s scrip witnessed an intra-day high of Rs 279.70 indicating a gain of around 9 percent as compared to the previous close of Rs 256.45 apiece.
Such stock price movements were witnessed after the company, through a regulatory filing with the BSE dated 23rd September 2023, announced that the company has received a Letter of Award (LoA) from Oil and Natural Gas Corporation Limited (ONGC) worth Rs 108 crores.
The work order mentioned above pertains to the provision of HP Compressors. The execution time decided is within a period of three years from the date of mobilization.
Keeping a purview of just six months, the company’s stock has proven to deliver multibagger returns of around 105 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock, it would have converted to Rs 2.05 lakhs within a period of six months.
During the past couple of financial years, the company’s financial performance has been positive with an increase in the basic business indicators such as the operating revenues and after-tax profits.
The operating revenues increased from Rs 321.63 crores during FY21-22 to Rs 341.34 crores during FY22-23, and, the after-tax profits, in alignment with the above, went up from Rs 72.4 crores to Rs 125.3 crores.
The latest shareholding pattern of the company portrays the Promoters holding a 63.49 percent stake, and the Foreign Institutional Investors (FIIs) holding a 1.19 percent stake in the company.
Founded in 1991, Deep Industries Limited is a natural gas compression services provider based in India that holds an interest in gas dehydration, air & gas compression, drilling, etc. The company has also diversified into providing drilling and work-over services to production and exploration players through a fleet of rigs.
Written by Amit Madnani
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