In Friday’s trading session, the shares of one of the leading service provider stocks specialized in providing integrated services in the oil and gas sector jumps up to 3 percent upon receiving a new work order for Rs.62 Crores from Selan Exploration Technology Limited.
Price action
With a market capitalization of 3,854.08 Crores on Friday, the shares of Deep Industries Ltd were trading at Rs 587.65 per share, a drop of 2 percent making a high of Rs 617.70 compared to its previous closing price of Rs 601.80.
What happened
Deep Industries Limited has received a new domestic work order worth USD 7.30 Million equivalent to approximate Rs. 65 Crores from Selan Exploration Technology Limited for providing Integrated Drilling Services for Selan-operated blocks and the order is to last for eighteen months.
Integrated Drilling Services are a comprehensive set of services that cover all aspects of drilling operations which includes providing drilling equipment and managing the entire drilling process, from planning and well design to operations and maintenance.
About the company
Deep Industries Limited one of the leading service provider stocks specialised in providing integrated services to the oil and gas sector.
The company offers a diverse range of services, including drilling, well services, natural gas compression, and transportation solutions which plays a key role in the energy and infrastructure industries.
Deep Industries Limited has built a reputation operating a fleet of advanced equipment, such as drilling rigs and compressors, and has earned a strong presence in both domestic and international markets.
Key Contracts and Project
The company secured a Rs.1,402 crore production enhancement contract from ONGC, with a duration of 15 years. Revenue linked to production increases is expected to be primarily generated in the first 10 years.
Financials
The company’s revenue rose by 24.1 percent from Rs 110.98 crore to Rs 137.74 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 29.36 crores to Rs 38.41 crore during the same period.
Key Financial ratios
Deep Industries Limited has an Return on Equity (RoE) of 9.23 percent and a Return on Capital Employed (RoCE) of 11.18 percent. Furthermore, the company’s debt-to-equity ratio is 0.12.
Written by Sridhar J
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