Rs 57 crore order from Oil India: Micro-cap stock with high dividend yield trades below its Book value – keep an eye out!

Currently, the stock is trading at 0.65 times its book value and offers a dividend yield of 2.87 per cent.

The NSE benchmark Nifty 50 concluded the previous week with a decline of 1.02 per cent, marking the formation of a lower high and lower low candle on the weekly time frame. Looking forward, market participants are likely to experience heightened volatility, prompting us to spotlight an intriguing stock worthy of consideration—Alphageo (India) Ltd.

Alphageo (India) Ltd. is a micro-cap stock with a market capitalization of Rs 177 crore. The company specializes in providing Geophysical Seismic Data Acquisition, processing, and interpretation services for the exploration of hydrocarbons and minerals.

Over the weekend, the company announced that it has secured a Contract Award from Oil India Limited, Rajasthan. The contract involves the acquisition of 3D and 2D seismic data in Rajasthan, with a contract value of Rs. 57.15 Crores (inclusive of taxes). The order/contract is centered around 3D & 2D Seismic Data Acquisition, and the stipulated time for execution is December 2024.

Understanding 2D and 3D seismic data is essential, as they are crucial methods in geophysics, particularly in oil and gas exploration.

1.2D Seismic Data:

   - In 2D seismic surveys, seismic waves are generated along a single straight line or a set of parallel lines at the surface.

   - Geophones, sensors placed along the line(s), record reflections of these waves as they traverse through subsurface layers.

   - This method provides a cross-sectional view of the Earth's subsurface along the survey line(s), offering a simplified and linear representation.

2. 3D Seismic Data:

   - In 3D seismic surveys, seismic waves are generated in a grid pattern, covering a larger area at the surface.

   - Geophones are distributed across the entire grid, recording reflections from multiple angles and directions.

   - The result is a detailed three-dimensional image of the subsurface, providing a comprehensive understanding of the geological structure and potential hydrocarbon reservoirs.

   - 3D seismic data allows for a more accurate and detailed interpretation of subsurface features compared to 2D seismic data.

Key Differences:

Coverage: 2D seismic provides information along a single or set of lines, while 3D seismic covers a broader area with a grid pattern.

Detail: 3D seismic data offers a more detailed and accurate representation of subsurface structures compared to 2D seismic data.

Cost and Efficiency: 3D surveys are generally more expensive and time-consuming but provide more valuable and detailed information, making them preferable for detailed exploration and reservoir characterization.

Both 2D and 3D seismic data play crucial roles in the oil and gas industry, with 2D often used for initial reconnaissance and 3D for more detailed reservoir analysis and production planning.

Currently, the stock is trading at 0.65 times its book value and offers a dividend yield of 2.87 per cent.

Disclaimer: The article is for informational purposes only and not investment advice