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Deep Energy Resources Ltd. Stock Analysis

Small Cap
Evaluated by 907 users | BSE: 532760 | NSE: DEEPENR |
Oil Exploration
Deep Industries Limited (DIL), established in the year 1991 with headquarters in Ahmedabad, Gujarat, primarily caters to ever increasing demand for Oil and Gas Field Services requirements. Deep Industries is the largest company in India in private sector, operating maximum no. of Compressors,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 12.01%8.92%7.24%6.15%9.13%8.92%12.65%14.66%12.42%11.3%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 55.346.360.465.190.8101169277300259
Y-o-Y Gr. Rt.--16.4%30.6%7.7%39.5%11.6%67%64.1%8.3%-13.8%
Adjusted EPS (Rs.) 6.744.844.824.287.457.1824.1422.0623.5820.02
Y-o-Y Gr. Rt.--28.2%-0.4%-11.2%74.1%-3.6%236.2%-8.6%6.9%-15.1%
Book Value per Share (Rs.) 46.9653.5159.8565.5170.375.21134.7120.73142.33159.31
Adjusted Net Profit 14.311.41211.219.62143.370.675.564.1
Net Op. Cash Flow (Rs. Cr.) 29.815.328.4323942.770.211213688.6
Debt to Cash Flow from Ops 1.512.593.572.732.862.673.772.431.70.92
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Deep Energy Resources Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 18.7%23.3%15.3%-13.8%
Adjusted EPS 12.9%21.9%-6.1%-15.1%
Book Value per Share 14.517.85.811.9
Share Price -2.1% -20.9% -33.5% -41%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 15.39.838.656.9510.7110.1418.3322.0817.9313.27
Operating Profit Margin (%) 55.8555.7247.755.3457.8354.3158.9356.1654.0154.8
Net Profit Margin (%) 25.8824.5619.8317.2721.5620.6925.6225.4525.1124.72
Debt to Equity 0.450.320.680.510.610.521.090.70.510.16
Working Capital Days 196297327307194189178139128188
Cash Conversion Cycle 7810912912579951017974102
Entity Percentage Holding
Promoters 63.99%
Institutions 5.86%
Non-Institutions 30.15%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Deep Energy Resources Ltd.'s performance infers:

Deep Energy Resources Ltd. earnings have grown by 21.9%, whereas share price has depreciated -20.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Deep Energy Resources Ltd. share prices over the last 10 years. Here is what we found out:

Deep Energy Resources Ltd. share price has depreciated -4.4% annually over the past ten years.

Deep Industries Limited (DIL), established in the year 1991 with headquarters in Ahmedabad, Gujarat, primarily caters to ever increasing demand for Oil and Gas Field Services requirements. Deep Industries is the largest company in India in private sector, operating maximum no. of Compressors, having more than 20 Gas & Air Compressors in stock.

DIL is well diversified Oil & Gas Company with business interest in Air and Gas compression, Drilling, Work over and Oil & Gas

Deep Industries Limited (DIL), established in the year 1991 with headquarters in Ahmedabad, Gujarat, primarily caters to ever increasing demand for Oil and Gas Field Services requirements. Deep Industries is the largest company in India in private sector, operating maximum no. of Compressors, having more than 20 Gas & Air Compressors in stock.

DIL is well diversified Oil & Gas Company with business interest in Air and Gas compression, Drilling, Work over and Oil & Gas Exploration and Production.Deep Industries Limited is a pioneer in the service sector of oil and gas fields, mainly in Gas compression services. They also provide work-over, Drilling Rig and allied services. The Company was formed primarily for providing valued, dedicated and professional services to the oil & Gas client in India.

After 16 years of featured services to the esteemed clients, namely Oil & Natural Gas Corporation Limited (ONGCL), Assam Gas, and the private operators like L&T, Niko-GSPCL, HOEC, Selan Explorations etc to their utmost satisfaction. Deep Industries Ltd is focusing towards expanding its operations to United States of America (USA), Asian countries and the southern part of India for providing services as an outsourcing service provider to Oil & Gas Industry.

DIL has been awarded two Coalbed Methane (CBM) blocks by Government of India in the CBM III round. DIL has also been awarded service contract for the development of three onshore marginal fields at Ghotaru, Bankia and Kharatar in Jaisalmer district of Rajasthan.

Deep Industries Limited (DIL) along with its consortium members has been awarded CBM blocks under the third round of Coalbed Methane Exploration policy. Subsequently DIL signed a production sharing contract with GOI for exploration of Coalbed Methane for a period of 34.5 years. The current project deals with exploration of Methane gas entrapped within the coal seams. In case of encouraging results of exploration, development of the block for the purpose of production of Methane gas is also envisaged.Deep Industries Limited (DIL) has been awarded service contract for the development of three onshore marginal fields by ONGC.Marginal Fields are located at Ghotaru, Bankia and Kharatar in Jaisalmer district of Rajasthan.

The company is executing contract compression on turnkey basis, which includes supply of Equipment, Commissioning, Operation & Maintenance of Gas Engine driven compressor package. It has joined hands with reputed and experienced companies like Valerus Compression Services, Houston Texas, Hanover Company USA for supply of gas compressor packages in India and have technical back up for varied services of Oil & Gas sector.

Deep Industries Limited acquires another milestone by Signing MOU for Technical Collaboration with Abu Dhabi General Maintenance and Petroleum Services Company ( ADMASCO ) for Drilling Rigs up to 2000HP on 10 January 2008.

The company is prepared to undertake significant growth and succeed to achieve through focusing on specialized activities and offering a broad spectrum of skills to serve a wide clientele base for Oil and Gas Exploration, Engineering, Servicing, Transportation, Natural Gas Compression, work over and drilling and other allied services furnishing entire range of activities from conceptualization to completion as required by Oil, Gas and Petrochemical Industries. The company endeavor to achieve a high-quality reputation and excel in all its undertakings by implementing the strategies.

The company has executed many jobs of contract compression. Its ongoing projects include:

  • ONGC Mehsana - Compressing 2.0 Lacs SCMD at Sobhsan CTF, Mehsana
  • GACL Dahej - Compressing 60000 SCMD at Dahej Works
  • Assam Gas Company - Compressing 20000 SCMD at Golaghat
  • ONGC Rajahmundry - Compressing 80000 SCMD at Kesanapalli (West)
  • ONGC Hazira - Compressing 100000-120000 SCMD at 03 nos. of Installation Geleky
  • GSPL Gandhinagar - Compression 150000 SCMD at Olpad Surat at 3 nos. of Installations.

Subsidiaries

Deep Energy, LLC, a subsidiary of Deep Industries Limited is an Oil and Gas Operator, Exploration and Production company in the state of Okhlahama, USA. It currently operates at Earlsboro Field .

Milestones

  • A total solution provider in oil and gas field since the year 1991
  • First company in India to provide high pressure air compressor on charter hire basis
  • First company in India to provide natural gas compressors on charter hire basis
  • Largest private sector natural gas Compression Company in India
  • First company to provide natural gas compression services globally
  • Compressor up time is 98% without standby and 100% with standby
  • Awarded two CBM blocks in CBM III rounds by Government of India
  • Awarded service contract for the development of three Marginal Field Gas blocks by ONGC

Awards/Achievements

Member of International Association of Drilling Contractors (IADC) in good standing and pursuing highly accredited ISO 9001-2000 Quality Management System.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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