Deep Industries zooms 38% in three days on bagging ONGC contract

The stock rallied 20 per cent to Rs 170 on Thursday in early morning trade, surging 38 per cent in past three trading days on the BSE.

Shares of Deep Industries has rallied 20 per cent to Rs 170 on Thursday in early morning trade, surging 38 per cent in past three trading days on the BSE, after the company received two orders worth Rs 184 crore from Oil and Natural Gas Corporation (ONGC). The said orders would increase revenue visibility for the coming years.

With past three days rally, the stock of integrated oil & gas company has zoomed 115 per cent from its 52-week low price of Rs 79 hit on July 6, 2018. It trading at close to its 52-week high level of Rs 179 touched on April 11, 2018 on the BSE in intra-day trade.

The two orders was for deployment of 2 number of 1,000 HP drilling rig for ONGC Ahmedabad Asset for a period of three years. The approximate value of the said contracts are Rs 91.75 crore each, calculated at exchange conversion rate equals to Rs 70 per 1 US Dollar.

After receiving orders, the management said Indian oil‐gas majors have started issuing orders after a long hiatus and that they believe this is positive for industry and company in particular. "This order inflow coupled with the company’s growing orderbook in the overseas oil‐gas services segment give good revenue visibility for the next couple of years." they said.

Deep Industries is a leading services provider in the oil and gas and coal bed methane (CBM) sectors with its business interests in the areas of natural gas compression, natural gas dehydration, drilling rigs services & integrated project management services.

At 09:37 am, Deep Industries was trading 12 per cent higher at Rs 159 on the BSE. In comparison, the S&P BSE Sensex was up 0.25 per cent at 37,845 points. The trading volume on the counter jumped 2.25 times with a combined 401,959 equity shares changed hands on the NSE and BSE.