Stock of the Day: Today, i.e. on Monday, while the shares of big companies are sinking, the shares of a company with a market cap of Rs 3.02 thousand crores are soaring. We are talking about Deep Industries, whose shares are being bought by investors. Today, its shares rose by more than 19 percent and reached an all-time high of Rs 474.70. That too when the company received an order of Rs 1,402 crore from Oil and Natural Gas Corporation (ONGC).
Biggest project till date: According to Money Control, the contract is for production enhancement operations at ONGC’s mature Rajahmundry asset for 15 years and is Deep Industries’ biggest project till date, more than doubling its existing order book. The company’s order book stood at Rs 1,246 crore as of June 30, 2024.
“This strategic win positions us to play a key role in the evolving oil and gas services value chain. The PEC (performance enhancement contract) framework not only broadens our revenue stream but also enhances our profitability,” Deep Industries MD Paras Savla said in an exchange filing.
The objective of the PEC is to enhance hydrocarbon production from old and exhausted and mature fields, thereby extending their operational life by about 15 years beyond their original lifespan. ONGC’s target for the Rajahmundry asset is to augment the hydrocarbon reserves in the contract areas by employing safe and efficient operational practices as well as employing appropriate techniques and technologies to enhance the current production levels and overall hydrocarbon recovery.
Flight up over 42 per cent in a month
At around 1 pm, Deep Industries shares were trading at Rs 470.95 on the NSE, slightly below its day’s high. The stock has been on a bull run in the last month, gaining over 42 per cent in this period. While, in 6 months, it has given a return of about 87 per cent. Its 52-week low is Rs 227.05.
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