DEE Development Engineers shares soar on order win from L&T's unit

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Share price of DEE Development Engineers soared up to 3.1 per cent at Rs 362 per share on the BSE in Tuesday’s intraday deals.

This positive performance followed the company securing a purchase order worth Rs 26.58 crore from L&T Energy Hydrocarbon, a division of Larsen & Toubro Ltd. The order involves piping spool fabrication, including NDT, PWHT, blasting, and painting.

DEE Development Engineers specialises in providing customised process piping solutions for sectors such as oil and gas, power (including nuclear), chemicals, and other process industries through engineering, procurement, and manufacturing.

The stock price of the company has soared 8.3 per cent from its issue price of Rs 203. The company debuted on the Indian bourses on August 26, 2024 and successfully raised Rs 418.01 crore.

At the time of the IPO, the brokerage firm Swastika Investmart had stated that DEE has a strong competitive position with established clients and boasts a diverse portfolio of specialised offerings. It also benefits from a robust order book and consistent financial performance. 

However, some key risks necessitate careful consideration, the brokerage highlighted.  DEE's business is susceptible to downturns in the industries it serves, such as oil and gas, power, and chemicals, analysts said. Additionally, competition from both domestic and international players presents a challenge. Furthermore, losses incurred by its subsidiaries require monitoring.

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In the April-June quarter of financial year 2024-25 (Q1FY25), the company’s net profit stood at Rs 3.19 crores against net loss of Rs 4.58 crore during the previous quarter ended June 2023.

Meanwhile, revenues jumped 17.56 per cent to Rs 184.97 crore in the quarter ended June 2024 as against Rs 157.34 crore during the same quarter last year. 

The company has a total market capitalisation of Rs 2,434.50 crore. At 02:36 PM the shares of the company pared gains slipping into red and were trading 0.23 per cent lower at Rs 350 per share. By comparison the BSE Sensex was up 0.16 per cent at 81,831 levels.