Synopsis:
Aakash Exploration Services Limited provides oilfield services, including workover rigs, and recently won a ₹50 crore five-year ONGC Ahmedabad Asset contract for a 50 MT rig.
This Penny stock under Rs. 15, engaged in providing oil and gas field services, including workover rigs, pumping units, compressors, steaming units, manpower, and maintenance services, jumped 4 percent after securing a five-year contract worth Rs. 50 crore from Oil & Natural Gas Corporation Limited (ONGC).
With a market capitalization of Rs. 107.22 crores, the share of Aakash Exploration Services Limited has reached an intraday high of Rs. 10.76 per equity share, rising nearly 3.5 percent from its previous day’s close price of Rs. 10.40. Since then, the stock has retreated and is currently trading at Rs. 10.59 per equity share.
What is the news?
Aakash Exploration Services Limited has announced that it has received a Notification of Award from Oil & Natural Gas Corporation Limited (ONGC) for providing services of a 50 MT Workover Rig for the Ahmedabad Asset.
The contract will run for a period of five years and has an approximate value of Rs. 50 crore, which is about Rs. 10 crore per year. This is a domestic contract awarded by ONGC, and it is a service order for operational support. The award strengthens AAKASH Exploration’s business portfolio and ensures a steady revenue stream for the next five years.
Company Overview
Aakash Exploration Services Limited (AESL) was established in 2007 and is headquartered in Ahmedabad, Gujarat, India. The company provides various services in the oil and gas field, mainly focusing on field exploration and production support.
The company’s offerings include equipment and services such as workover rigs (40-ton and 50-ton), mobile pumping units, mobile air compressors, mobile steaming units, hot oil circulation units, sucker rods, and coiled tubing units. AESL primarily operates at the production stage of oil and gas exploration, supporting processes after the land surveys and drilling are completed.
Aakash Exploration Services Limited has notable clients like ONGC and Vedanta Limited, with multiple contracts for workover rig services and other oilfield equipment supply, including recent awards for multi-year contracts.
Recent quarter results
Coming into financial highlights, Aakash Exploration Services Limited’s revenue has decreased from Rs. 26.01 crore in Q1 FY25 to Rs. 23.86 crore in Q1 FY26, which is a drop of 8.27 percent. The net profit has also decreased by 55 percent from Rs. 1.20 crore in Q1 FY25 to Rs. 0.54 crore in Q1 FY26.
In terms of return ratios, the company’s ROCE and ROE stand at 5.59 percent and 3.10 percent, respectively. Aakash Exploration Services Limited has an earnings per share (EPS) of Rs. 0.12, and its debt-to-equity ratio is 0.29x.
Written By – Nikhil Naik
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