Oil and Gas Field Company Secures Largest Order to Date Worth Rs 1,402 Crore from ONGC – Stock Rallied 20 Per cent Today, Hit Upper Circuit & 52-Week High!

Rakesh Deshmukh
Oil and Gas Field Company Secures Largest Order to Date Worth Rs 1,402 Crore from ONGC – Stock Rallied 20 Per cent Today, Hit Upper Circuit & 52-Week High!

The company’s shares have delivered an impressive multibagger return of over 65 per cent in just 3 months.

Incorporated in 1991, Deep Industries Ltd is engaged in providing oil and gas field services, including Air & Gas Compression, Drilling and Workover, and Gas Dehydration services. The company also offers integrated project management services.

Deep Industries Ltd, a Small-Cap integrated solutions provider for oil and gas operations, has secured a significant order worth Rs 1,402 crore from the Oil and Natural Gas Corporation (ONGC). The contract involves Production Enhancement Operations in the mature fields of ONGC's Rajahmundry Asset and spans 15 years. This is the largest project awarded to the company to date, more than doubling its current order book. As of June 30, 2024, the Company’s order book stood at Rs 1,246 crore.

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On Monday, the shares of Deep Industries Ltd hit the upper circuit today and finally closed at around Rs 477.15 per share on the BSE. The company’s current market capitalization stands at Rs 8,165 crore. Additionally, the shares have delivered an impressive multibagger return of over 330 per cent in the past 2 years.

As per the Quarterly Results, in the Q1 FY25, Deep Industries Ltd recorded a revenue of Rs 626 crore compared to Rs 553 crore. The operating profit stood at Rs 79 crore with a margin of 13 per cent which was earlier 10 per cent same quarter last year. The net profit stood at Rs 55 crore compared to a profit of Rs 50 crore.  Looking at the annual performance, the company generated a revenue of Rs 427 crore in FY24. The operating profit for FY24 was Rs 167 crore with a net profit of Rs 125 crore.

According to the shareholding pattern of the company, the promoters hold a significant 63.49 per cent stake. Public investors own 34.40 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 2.11 per cent.

Check out my recent article here.

Investors must keep this stock on their radar.

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

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