Shares of Deep Industries surged 19%, to hit a fresh 52-week high of ₹473.55 apiece on Monday after it secured a ₹1,402 crore contract from Oil and Natural Gas Corporation (ONGC). The contract spans 15 years and focuses on boosting hydrocarbon production in mature, depleted fields, the company states in a BSE filing.
At the time of reporting, Deep Industries shares were trading at ₹464.20, marking a 16.74% increase from the previous close of ₹397.65. The stock opened higher today at ₹449.95, in sync with the strong broader market. The company’s market cap stands at ₹2,970.88 crore. Over the past month, the stock has climbed 40.18%, surged 83.87% in the last six months, and gained 81.57% year-to-date (YTD).
Deep Industries highlighted that this is the largest project it has ever received, more than doubling its order book, which stood at ₹1,246 crore as of June 30, 2024.
The company states that ONGC plans to increase hydrocarbon reserves at the Rajahmundry site by using advanced techniques and safe, efficient practices to enhance current production and recovery rates. Production Enhancement Contracts (PECs) are intended to extend the operational life of such fields by approximately 15 years, it adds.
Paras Savla, MD, Deep Industries Ltd. said, “We are thrilled to announce this achievement as we extend our expertise into Production Enhancement Contracts (PEC). This strategic win positions us to play an increasingly integral role in the evolving oil and gas services value chain. With over three decades of experience in the sector, Deep Industries is well-equipped to optimise oil and gas production through the deployment of proven, advanced techniques.
“The PEC framework not only broadens our revenue streams but also enhances our profitability, making it a value-accretive proposition for our stakeholders. We remain confident in our ability to deliver exceptional outcomes, driving sustainable growth and long-term success,” Savla adds.
Deep Industries Ltd. adds that the company has been specialising in a range of Oil & Gas support services for over 30 years. Their service portfolio encompasses Natural Gas Compression, Natural Gas Dehydration, Workover and Drilling Rig Services, as well as Integrated Project Management Services, it adds.
Deep Industries reported a net profit of ₹38.74 crore for Q1FY25, reflecting a 24.9% increase from ₹31.01 crore in the same quarter last year. Revenue from operations increased by 21.9% year-on-year to ₹123.5 crore for the quarter ending June 2024, compared to ₹101.32 crore in the same quarter of 2023.
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