Tie-up with IOC fuels Deep Industries

Tie-up with IOC fuels Deep Industries

Deep Industries gained 4.99% to Rs 157.90 at 11:33 IST on BSE, after the company said it has signed memorandum of understanding with Indian Oil Corporation.

The company made this announcement during trading hours today, 4 February 2008.

Meanwhile, BSE Sensex was up 512.22 points or 2.81% to 18,754.80, as Asian stocks surged with sentiment boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto.

On BSE, 92,313 shares were traded in the counter. The scrip had an average daily volume of 2.39 lakh shares in the past one quarter.

The stock hit a high of Rs 157.90 and a low of Rs 153 so far during the day. The stock had a 52-week high of Rs 271 on 8 January 2008 and a 52-week low of Rs 41.80 on 8 March 2007.

The small-cap scrip had underperformed the market over the past one month till 1 February 2008, declining 36.86% compared to the Sensex’s decline of 10.33%. It had also underperformed the market in the past one quarter, declining 15.81% compared to Sensex’s decline of 8.68%.

The company’s current equity is Rs 20 crore. Face value per share is Rs 10.

The current price of Rs 157.90 discounts its Q3 December 2007 annualized EPS of Rs 4.80, by a PE multiple of 32.90.

The memorandum of understanding (MoU) with Indian Oil Corporation (IOC) involves exploring the possibility of joint development of two coal bed methane (CBM) blocks and three marginal gas fields and marketing of gas.

On 26 December 2007, Deep Industries secured an order from Gujarat State Petronet for compression of natural gas at Olpad, Surat for a period of five years.

Deep Industries’ net profit declined 40.7% to Rs 2.40 crore on 218.6% growth in net sales to Rs 5.83 crore in Q3 December 2007 over Q3 December 2006.

The company provides equipments and services for drilling and work over, air and gas compression and allied business.