Deep Industries Limited: A Promising Player in the Oil and Gas Sector

Pasal Wealth
Dec 31, 2024
2 min read

Deep Industries Limited is carving a strong niche in the oil and gas sector through strategic initiatives and consistent performance. Below, we explore its latest developments, key financial metrics, and growth prospects.

Recent Milestone: Fund Raise Approved

The company’s board has approved raising INR 350 Cr via Qualified Institutional Placement (QIP). This strategic move aims to fuel the company’s expansion plans and strengthen its market presence.

Financial and Operational Highlights

Consistent Profit Growth

Deep Industries has maintained a 4-year operating profit uptrend, complemented by a 2-quarter streak of improved performance. This track record demonstrates robust operational management.

Strong Order Book

The company boasts an order book worth INR 2,622 Cr, translating to 5.7 times its trailing twelve-month (TTM) revenue. This backlog underscores its financial stability and growth potential.

September 2024 Results

Recent quarterly results reveal impressive revenue growth and a solid order pipeline, affirming the company’s strategic direction.

Growth through JVs and Acquisitions

To enhance its capabilities and market reach, Deep Industries is actively pursuing joint ventures and acquisitions, fostering long-term growth.

Positive Future Outlook

The company projects a minimum revenue growth of 25% for FY25 and plans to enhance its EBITDA margin from 42% to 45%. These goals align with its vision for sustained growth and profitability.

Core Competencies

Deep Industries specializes in comprehensive services tailored for the oil and gas sector, including:

Air and Gas Compression Services
Drilling and Workover Services
Gas Dehydration Services
Integrated Project Management Services

These offerings, provided on a rental and chartered-hire basis, position the company as a versatile and reliable partner in the industry.

Investment Opportunity

For potential investors, Deep Industries offers a compelling case with its:

Market Capitalization: INR 3,489 Crore (as of December 30, 2024).
TTM PE Ratio: 25.2x, reflecting investor confidence.
Retail Float: 16.6% (as of September 2024), ensuring accessibility for retail participants.

Conclusion

With a robust order book, innovative growth strategies, and a clear vision for the future, Deep Industries Limited stands out as a key player in the oil and gas sector. Its focus on operational excellence and expansion through strategic investments makes it a promising choice for investors seeking value and growth.