NSEI:DEEPIND

Stock Analysis Report

Executive Summary

Deep Industries Limited, a diversified oil and gas company, provides air and gas compression, work over, drilling rig, and gas dehydration services in India.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Deep Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

DEEPIND

7.2%

IN Energy Services

3.8%

IN Market


1 Year Return

10.2%

DEEPIND

-7.7%

IN Energy Services

6.0%

IN Market

Return vs Industry: DEEPIND exceeded the Indian Energy Services industry which returned -7.7% over the past year.

Return vs Market: DEEPIND exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

DEEPINDIndustryMarket
7 Day2.2%7.2%3.8%
30 Day-4.5%0.8%2.9%
90 Day-11.0%-12.5%2.9%
1 Year11.8%10.2%-6.8%-7.7%8.2%6.0%
3 Year-61.8%-63.1%-31.7%-33.3%23.0%16.7%
5 Year49.2%41.7%-11.4%-13.0%43.6%30.0%

Price Volatility Vs. Market

How volatile is Deep Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deep Industries undervalued compared to its fair value and its price relative to the market?

5.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DEEPIND (₹101.6) is trading above our estimate of fair value (₹28.79)

Significantly Below Fair Value: DEEPIND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DEEPIND is poor value based on its PE Ratio (5.4x) compared to the Energy Services industry average (5.2x).

PE vs Market: DEEPIND is good value based on its PE Ratio (5.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DEEPIND's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DEEPIND is good value based on its PB Ratio (0.6x) compared to the IN Energy Services industry average (0.8x).


Next Steps

Future Growth

How is Deep Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEEPIND's forecast earnings growth (13% per year) is above the savings rate (7.6%).

Earnings vs Market: DEEPIND's earnings (13% per year) are forecast to grow slower than the Indian market (18% per year).

High Growth Earnings: DEEPIND's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if DEEPIND's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if DEEPIND's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DEEPIND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Deep Industries performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DEEPIND's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: DEEPIND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DEEPIND had negative earnings growth (-20%) over the past year, making it difficult to compare to the Energy Services industry average (62.1%).


Return on Equity

High ROE: DEEPIND's Return on Equity (11.5%) is considered low.


Return on Assets

ROA vs Industry: DEEPIND has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: DEEPIND's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Deep Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DEEPIND's short term assets (₹2.6B) exceeds its short term liabilities (₹1.5B)

Long Term Liabilities: DEEPIND's short term assets (2.6B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: DEEPIND's debt to equity ratio (26.6%) is considered satisfactory

Reducing Debt: DEEPIND's debt to equity ratio has reduced from 56.2% to 26.6% over the past 5 years.

Debt Coverage: DEEPIND's debt is well covered by operating cash flow (44.3%).

Interest Coverage: DEEPIND's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet

Inventory Level: DEEPIND has a high level of physical assets or inventory.

Debt Coverage by Assets: DEEPIND's debt is covered by short term assets (assets are 1.882530x debt).


Next Steps

Dividend

What is Deep Industries's current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DEEPIND's dividend (1.47%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: DEEPIND's dividend (1.47%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: Whilst dividend payments have been stable, DEEPIND has been paying a dividend for less than 10 years.

Growing Dividend: DEEPIND's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8%), DEEPIND's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Deep Industries's salary, the management and board of directors tenure and is there insider trading?

14.6yrs

Average management tenure


CEO

Parasbhai Savla (48yo)

14.6yrs

Tenure

0

Mr. Parasbhai Shantilal Savla serves as Chairman and Managing Director of Prabha Energy Private Limited. Mr. Savla has been Chairman and Managing Director of Deep Industries Limited. since March 1, 2005. H ...


Management Age and Tenure

14.6yrs

Average Tenure

43.5yo

Average Age

Experienced Management: DEEPIND's management team is seasoned and experienced (14.6 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

48yo

Average Age

Experienced Board: DEEPIND's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹3,008,66626 Jun 19
Savla Oil And Gas Private Limited
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Shares20,000
Max Price₹150.43
Buy₹2,166,04020 Jun 19
Savla Oil And Gas Private Limited
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Shares15,000
Max Price₹144.40
Buy₹3,911,29615 Jun 19
Savla Oil And Gas Private Limited
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Shares25,000
Max Price₹156.45
Buy₹4,011,62412 Jun 19
Savla Oil And Gas Private Limited
EntityCompany
Shares25,000
Max Price₹160.46
Buy₹7,763,37311 Jun 19
Savla Oil And Gas Private Limited
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Shares50,000
Max Price₹155.27
Buy₹4,136,72803 Jun 19
Savla Oil And Gas Private Limited
EntityCompany
Shares25,000
Max Price₹165.47

Ownership Breakdown


Management Team

  • Rupesh Savla (47yo)

    MD & Executive Director

    • Tenure: 21.4yrs
  • Parasbhai Savla (48yo)

    Chairman & MD

    • Tenure: 14.6yrs
  • Rohan Shah (40yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹1.53m
  • Akshit Soni (32yo)

    Compliance Officer & Company Secretary

    • Tenure: 3.6yrs
    • Compensation: ₹477.00k

Board Members

  • Rupesh Savla (47yo)

    MD & Executive Director

    • Tenure: 21.4yrs
  • Parasbhai Savla (48yo)

    Chairman & MD

    • Tenure: 14.6yrs
  • Renuka Upadhyay (36yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹40.00k
  • Kirit Joshi (68yo)

    Non-Executive Independent Director

    • Tenure: 7.3yrs
    • Compensation: ₹20.00k
  • Kirit Shelat (73yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: ₹40.00k
  • Hemendrakumar Shah

    Independent & Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: ₹60.00k

Company Information

Deep Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deep Industries Limited
  • Ticker: DEEPIND
  • Exchange: NSEI
  • Founded: 1991
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: ₹3.264b
  • Shares outstanding: 32.00m
  • Website: https://www.deepindustries.com

Location

  • Deep Industries Limited
  • 12A & 14, Abhishree Corporate Park
  • Ambli Bopal Road
  • Ahmedabad
  • Gujarat
  • 380058
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532760BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2006
DEEPINDNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2006

Biography

Deep Industries Limited, a diversified oil and gas company, provides air and gas compression, work over, drilling rig, and gas dehydration services in India. The company is also involved in the exploration ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.