900 per cent returns in this multibagger stock: This small-cap company forms a joint venture with Euro Gas Systems (EGS)!

The stock gave multibagger returns of 130 per cent in just 1 year whereas the BSE Small-cap index is up by 28.90 per cent.

Deep Industries Ltd announced that the company has entered into a Joint Venture arrangement with Euro Gas Systems S.R.L (EGS) to join hands for the purpose of submitting a bid/tender with qualification for carrying out business for supplying oil field equipment to the Oil and Gas Industry in India.

EGS (Enterprise Growth Solutions) has acquired a 26 per cent equity stake in Deep Onshore Drilling Services Private Limited (DODSPL), a subsidiary of DIL (Deep Industries Limited), while the remaining 74 per cent is held by DIL. The management of the joint venture agreement will be overseen by directors nominated or appointed by Deep Industries Limited, in accordance with the agreement's terms. In case any director resigns or retires from office in the Joint Venture Company, DIL retains the right to nominate or appoint another director to fill the vacancy.

Additionally, the company have received an order worth Rs 130 crore from Oil and Natural Gas Corporation Limited (ONGC). The order is for the Charter Hiring of 1 number of 90 MT Mobile Drilling Rigs for ONGC Bokaro and to provide a complete drilling rig and equipment conforming to the broad and general standards as mentioned in the technical specifications of the tender document. The order will be completed in 3 years from the commencement date of the contract.

On Friday, shares of Deep Industries Ltd jumped 5.38 per cent to Rs 214.40 per share from its previous closing of Rs 203.45. The stock traded at an intraday high of Rs 216.05 and an intraday low of Rs 204.75 with a spurt in volume by more than 2,41 times on BSE. The stock gave multibagger returns of 130 per cent in just 1 year whereas the BSE Small-Cap index is up by 28.90 per cent.

Deep Industries Ltd is in the business of oil and gas field services. The company specializes in providing air & gas compression services, drilling and workover services, gas dehydration services, etc. The company also provides integrated project management services.

According to the financials, the company has a market cap of Rs 1,373 crore. The company has reported amazing numbers in its Quarterly Results (Q4FY23) and annual results (FY23). 

The stock has delivered a return of over 900 per cent to investors since it was listed on BSE and NSE on April 30, 2022. This means that an investor who bought the stock on the day of listing and held it until today would have seen their investment grow by more than 9 times. Investors should keep a close eye on this small-cap stock.