Monday, September 21, 2009

Deep Ind...........cmp Rs 112.95........

Deep Ind is in Gas sector.Actually gas compression company.DEEp Ind 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. We also provide work-over, Drilling Rig and allied services. The Company was formed in the year 1991 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 Niko-GSPCL, CPCL, GACL, GSPL, HRD, JTI Selan Explorations etc to their utmost satisfaction. Deep Industries Ltd is focusing towards expanding its operation 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.
Deep Industries Limited has been awarded one onshore Oil and Natural Gas block by Government of India.DIL has been awarded two Coal bed Methane (CBM) blocks by Government of India in 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.
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.

Oil and GAS
Deep Industries Limited has been awarded one onshore Oil and Natural Gas block by Government of India in recent New Exploration Licensing Policy (NELP)-VII round.

Coal Bed Methane ( CBM )
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.

Marginal Fields:
IL is working on Marginal field Natural Gas projects at Ghotaru, Bankia and Kharatar in Jaisalmer district of Rajasthan.


Range of Compressors: 100 HP to 4000 HP
Drives: Natural Gas Engine, Diesel Engine & Electric Motor
Long and Short term Rental Contracts
Wet Lease/ Dry Lease
Total Operation and Maintenance Contracts
Supply of Spare Parts & Components

Workover and Drilling:

Range of Rigs: 30 Tons to 100 Tons, 150 HP to 2000 HP
Long and Short term Rental Contracts
Total Operation and Maintenance Contracts
Supply of Spare Parts & Components
Integrated Services.


1)Deep Industries Ltd has informed BSE that the Company has obtained Letter of Award from ONGC, Ahmedabad Asset for hiring the services of compression of natural gas at Ramol GGS for Ahmedabad Asset approx. value of contract aggregating to Rs 77.50 million.1. Location : Ramol GGS- Approx. Contract Value (in Rs.) : 77.50 million

2)Deep Industries Ltd has informed BSE that the Company has obtained Notification of Award from ONGC, Rajahmundry Asset for Charter Hiring one Work Over Rig of 100 Ton capacity aggregating to Contract Value Rs 296.24 Lacs.

3)Deep Industries Ltd has informed BSE that the Company has obtained following Extention of Contract agreement with GACL and Letter of Awards from ONGC of following Compressors for Hiring of services for Natural Gas Compression aggregating to Rs 764.85 Lacs.1. LOA From: GACL, Vadodara- Approx. Contract Value in Rs - 44.35 lacs2. LOA From: ONGC Assam AssetApprox. Contract Value in Rs - 187.60 lacs3. LOA From: ONGC Rajahmundry AssetApprox. Contract Value in Rs - 532.90 lacs.

4)Deep Industries Ltd has informed BSE that the Company has obtained Letter of Award from ONGC, Ankleshwar Asset and Mehsana Asset for deployment of following Compressors for compressing the natural gas at various locations of Ankleshwar Asset and Mehsana Asset approx. value of contract aggregating to Rs 2299.50 Lakhs.1. Location - North Gandhar, AnkleshwarApprox Contract Value - Rs 328.50 Lacs2. Location - Balol, MehsanaApprox Contract Value - Rs 1971.00 Lacs.

5)Deep Industries Ltd has informed BSE that the Company had bidded for the Blocks under New Exploration Licensing Policy - Seventh Round (NELP - VII). The Company has been successful in getting award of Block No. SR-ONN-2005/I at Satpura - Rewa (Chattisgarh). The area of Block is 789 Square Kilometers. The Company had bidded for this block in consortium with Deep Energy LLC, Kanvel Finance Pvt Ltd and Savla Enterprise Pvt Ltd.Following is the sharing pattern of this block:
Block : Satpura - Rewa (SR-ONN-2005/I)- Deep Industries Ltd : 70%- Deep Energy LLC : 10%- Kanvel Finance Pvt Ltd : 10%- Savla Enterprise Pvt Ltd : 10%.

My Comments:
Deep Ind is an excellent growth company.Ril Ind is finding more and more gas in Kaveri Basin etc and Gas will be produced in abundence and compressing of Gas will be a prime priority.Deep ind is going to get many more contracts in future.That is what I am seeing.
In last bull run it made a high of Rs 271 and it is still available over 50% cheaper.The eps is just around 4 for full year and still price is Rs 112 .Looking at the future growth market is giving huge discounting for this wonderful co.
According to my view Deep Ind is a buy at these level as well.Though it has runup recently I still think this is a buy.Market is knowing something about it and hence it is running now.


  1. Dear Rajeev Ji,
    I do have GSPL in my account , shoud I sell GSPL and add Deep Industries in my account.


  2. ABOUT Goldtech Infra

    Dear nakul-rajeev

    I wish to know that did you give call on Goldtech Infra?
    Is it a buy?
    As shared I am invested in
    GSPL and Welspun.
    WOuld liek to ad this since it seems to be into pipe maintainence.

    Kindly do let me have your view on Karturi Global.

    Warm regards as always


  3. Hi Rajeev,
    I was going through one of the posts and came across Bartronics which has monopoly in its business of RFID and SMART CARDs.
    Looks like one of WB companies.Need your opinion.
    Thanks in advance.

  4. HI Rajeev,

    Hitting once again your blog..

    I have done each piece of research on Deep Industries. In my views it is still 10 bagger from these levels.. investors like me whould not worry about near term price fluctuations in this scrip... at least we should buy 100 shares and can add more later on... :-)

    I believe this company is going to shine in coming future...

    thanks for ur reco


  5. thincktank,
    No, GSPL is still a buy and hold....never think of selling it

  6. rajendra,
    I talked about Goldstone Infra with Mitz.It is an upcoming co with interest in producing silicon wafers like XL and they also manuf insulators for power sector.
    Still in a very nascent stage of growth hence have not written at front.

  7. Vikas,
    Bartronics have been my favourite even though others feel it is not that worth.
    I remember someone asked me about IT seector stocks and I , in reply to him, wrote Bartronics as well at that time.That is some 3 months back or so.
    I remember I also wrote about Edserve Ltd when it was at 43 , 3 months back and I am seeing Edserve at over 100.
    That is why I use to tell my readers , read my reply for queries and you may find something interesting.That was what I use to write when I was at mmb as well.
    I sometimes gives a hint and one should be able to graps that up.Certian things are such that I can't write here in public and hence I just give a hint.Like say, Keep a watch on such and such stock.It means it is just not a watch but it is a buy.....

  8. Hi Rajeev,
    Got your point crystal-clear.

  9. Rajeevji whats ur call on edserve now. Hold or sell

  10. k,
    Edserve will consolidate now.There is less room for it to go up....this is ofcourse my view.It has gone up by almost 3 times after I talked with it to someone.
    But it is a great co to buy....

  11. rajeev....any opinion on the penny stock...cals refineries....they hv some expansion plans etc...u think this penny stock cud turn out to be a multibagger ??


  12. Dear Deepak,
    I think I gave the answer to you or someone else on Cals.
    Anyway, all the plans by Cals Refi are still in the nascent stage.Need to see how they get completed and whether in time and that is the key.
    Looks good on the paper.But well at this price,nothing to lose.

  13. I'm glad to see the implementation of a Natural Gas Engine in more consumer oriented automobiles.