Mehabe score: 3 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Deep Industries Limited is a diversified oil and gas company, engages in air and gas compression, drilling, work over, and oil and gas exploration and production businesses.Site:DEEPENR
Market Cap:
Rs 142 cr
Price:
44.3
Trading pe:
156.0x
Book-value:
124/share
Div yield:
0.00 %
Earning yield:
0.73%
Face-value:
10.0/share
52week high:
66.38
52week low:
30.50
Technical Analysis
Stock trades at 44.3, above its 50dma 39.58. It also trades above its 200dma 43.88. The stock remains bullish on techicals
The 52 week high is at 66.38 and the 52week low is at 30.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.36 times its book value
Weakness
– The company has delivered a poor sales growth of -62.71% over past five years.
– has a low return on equity of 6.32% for last 3 years.
Competition
– The industry trades at a mean P/E of 86.4x. Adani Total Gas trades at the industry’s max P/E of 361.81x. DEEPENR trades at a P/E of 156.0x
– Industry’s mean G-Factor is 5.3 while the mean Piotski score is 8.0. DEEPENR has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by Adani Total Gas: a return of 19.01 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.09 cr compared to Rs 0.33 cr for period ended Mar 2020, a rise of 230.3%
Operating Profits reported at Rs 0.34 cr for period ended Mar 2021 vis-vis 0.28 for period ended Mar 2020 .
Operating Margins contracted -5365.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.02 compared to Rs 0.04 for previous quarter ended Dec 2020 and Rs 0.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.38 cr for period ended Mar 2021 vis-vis sales of Rs 0.73 cr for the period ended Mar 2020, a healthy growth of 69.3%. The 3 year sales cagr stood at -80.3%.
Operating margins shrank to 57.56% for period ended Mar 2021 vis-vis 76.71% for period ended Mar 2020, contraction of 1915.0 bps.
Net Profit reported at Rs 0.43 cr for period ended Mar 2021 vis-vis sales of Rs 0.46 cr for the period ended Mar 2020, falling 7.0%.
Company reported a poor Net Profit CAGR of -82.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 0.0% compared to 6.0% over the last 3 Years. – The stock has given a return of -17% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is % vis-vis a compounded sales growth of -86% over the last 3 Years. – The compounded profit growth on a TTM basis is 2175% vis-vis a compounded profit growth of -81% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 5.85% vis-vis 5.85% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.15% vis-vis 30.15% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.36 times its book value – The company has delivered a poor sales growth of -62.71% over past five years.
– has a low return on equity of 6.32% for last 3 years.
