We need to understand businesses like Alphageo. The company is a leader in seismic data acquisition and processing. Around 10 years ago, it was doing a topline of around 30-40 crores, now it is doing a topline of around 400 crores. The earning is bound to be lumpy as orders are large and come at intervals.
The company remained focused in its niche in onshore seismic survey only. In good times, it commanded an EBIDTA of around 35%. Lately, the company is starting to diversify into other forms of Geophysical services for mineral explorations.
Scale of seismic survey orders are increasing. Recently Asian Oilfiled claims to have received an order worth 640 crores on its website. They also declared an order of 570 crores in latest investor presentation on 17.02.2020. Their order book is more than 900 crores with seismic work constituting 56% of the order book.
Alphageo presentation is not informing about order book. However, for the past 4-5 years, Alphageo had a lions share on seismic data work as obvious from the comparision of financial results of these two companies.
Shareholding changes in December quarter is showing sign of things turning better. Promoter shareholding has gone up from 44.93% to 45.22%. HNI individual shareholding [more than 20K shares] has gone up from 3.72 to 4.59%. Looks like informed purchases are happening in the company.
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