Deep Industries Share Price Analyzed

Deep Industries’ stock price jumped 5% on the BSE, reaching a peak of ₹463 per share. This increase was largely driven by news that the company secured a long-term contract with Oil and Natural Gas Corporation (ONGC). The overall BSE Sensex declined by 0.39% during the same period.

Key Points

• ONGC contract boosted Deep Industries’ stock price significantly.
• Stock rose to ₹463, while the Sensex decreased.
• Long-term deal with ONGC: 15-year contract secured.
• Deep Exploration Services now manages the ONGC project.
• Deep Industries specializes in oil and gas support services.
• Company boasts 30+ years of experience and skilled workforce.

Deep Industries has been in the oil and gas support business for over 30 years. They provide a wide range of services, including compressing natural gas, removing moisture, and managing drilling projects. The company currently has a market value of ₹2,860.8 crore, having previously reached a high of ₹624.5 per share.

The key event is the contract awarded to Deep Exploration Services, a subsidiary of Deep Industries. This contract with ONGC, worth 15 years, focuses on improving operations in ONGC’s Rajahmundry Asset. This arrangement intends to enhance the focus and accountability of the project team.

ONGC itself is a major player in India’s oil and gas sector, responsible for roughly 70% of the country’s domestic production. This significant relationship gives Deep Industries a stable and valuable client.

“The Company has entered into a Tripartite Addendum/Deed of Assignment with ONGC, and Deep Exploration Services Private Limited (DESPL), wholly owned (100 per cent) subsidiary for assigning this contract in favour of the DESPL with an intention to achieve improved focus and accountability towards effective execution of contract,” the filing read.