Deep Industries Ltd Stock Quotes and Charts
Call --BUY<br>CMP: Rs 239<br>Target: Rs 401<br><br>---Investment rationale <br><br>**Diversified oil and gas exploration, equipment and services provider, operating with 14 gas compressors and 3 workover rigs. Current order book of Rs 350mn mainly composed of gas compressor contracts, but contribution from rigs and exploration activities to increase substantially. <br><br>**Acquisition of new equipment would fuel growth with 3 workover rigs to come onstream from Q4FY08 and 7-8 gas compressors being imported over the next six months. Strong E&P activities will keep rig day rates on the higher side. <br><br>**Awarded three marginal fields by ONGC, with production likely to start from H2FY09 (66% stake in gas and 40% stake in crude oil reserves). This will significantly expand margins due to higher operating profits. <br><br>**Two CBM blocks won from the government under CBMIII, located at Godavari (North) and Singrauli with total estimated reserves of ~60bcm. Production expected to start from FY10, which will unlock significant value for the company. <br><br>**Topline set to log a CAGR of 147% over FY07-FY09 driven primarily by expanded fleet of workover rigs and contribution from marginal fields. <br><br>---Key concerns<br><br>**Execution risk, higher operating expenses may dent profitability. <br><br>---Valuation<br><br>**Using the SOTP approach, we have valued the compressor and workover rig businesses at Rs 95/share on a P/E multiple basis, the marginal fields at Rs 20/share and CBM blocks at Rs 286/share (both on DCF basis). Initiate coverage with Buy with a target price of Rs 401. <br>
Deep Industries net profit declines 40.74% in the December 2007 quarter.Sales rise 218.58% to Rs 5.83 crore.Net profit of Deep Industries declined 40.74% to Rs 2.40 crore in the quarter ended December 2007 as against Rs 4.05 crore during the previous quarter ended December 2006. Sales rose 218.58% to Rs 5.83 crore in the quarter ended December 2007 as against Rs 1.83 crore during the previous quarter ended December 2006.
Deep Industries reports net profit of Rs 1.53 crore in the March 2008 quarter <br><br>Sales rise 177.27% to Rs 6.10 crore <br><br>Deep Industries reported net profit of Rs 1.53 crore in the quarter ended March 2008 as against net loss of Rs 0.63 crore during the previous quarter ended March 2007. Sales rose 177.27% to Rs 6.10 crore in the quarter ended March 2008 as against Rs 2.20 crore during the previous quarter ended March 2007. <br><br>For the full year, net profit declined 14.37% to Rs 4.53 crore in the year ended March 2008 as against Rs 5.29 crore during the previous year ended March 2007. Sales rose 142.37% to Rs 20.02 crore in the year ended March 2008 as against Rs 8.26 crore during the previous year ended March 2007. <br>
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