Alphageo - Creating Seismic Waves

Am I right to believe that allocation of these blocks would create a significant business opportunity for Alphageo , given that the management has now indicated its willingness to participate in future tenders?

Yes, likely. But timeline of the opportunities remains to be seen. Waiting for the annual report to be released for last year.

You are missing the key point. These contracts are awarded based on 2-D surveys done by Alphageo hence this will benefit exploration companies.

Some of the tenders are already out there. The question is how much alphageo is able to get. Also, these tenders will be much smaller in size compared to what they did win from ONGC(large 2D order).

You may have a look at below link for some indication .

http://www.petrowatch.com/tender_display.php

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Wont the exploration companies need detailed 2D and 3D surveys before they begin drilling ?

@Sanchit0403 You are absolutely right. They will certainly need a survey. Only question is when and how much?
By they way there is competition in the market as well, Asian oilfields, Quippo and others as well.
Let’s see how the things pan out.

By the way alphageo AR is out. The link is below.
http://kcpl.karvy.com/images/2018/AGIL_7318/Alphageo-Annual%20Report%202017-18.pdf

Regards,
Raj
Disc: invested

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After 2D survey, 3D surveys are done. If oil company see promising deposits in 3D then exploration companies start drilling. Alphageo is not in the drilling business.

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Alphageo bagged order worth 33.89 crore from ONGC for 2D
Seismic Data Acquisition

Can you explain this because from what I see it cash and cash equivalents at the end of the year the figures are as follows:-

March 15 - 3.23 cr

March 16 - 3.75 cr

March 17 - 21.62 cr

March 18 - 21.75 cr

Please let me know when will company will complete 1500 cr 9rder book which they are having in 2017…

Any one has any idea how far company came on this order

Is fully executed or how much left over…

Any one attended any calls recently

Please throw some light if you know any info

As per Annual Report of 2017-18, as of March 2018 they have order book of 827 crore. After that we can see they have executed approx 137 crore of order in June & September quarter (based on the reported sales data for these quarters). So I believe they still have 700 crore of order book. In addition to this they have recently bagged 33.89 crore worth of order from ONGC for 2D survey.

Thanks,
Vinaya

After having 30 % OPM from past 7 ysr avg…Dont know why market dont like having full order book of 1500 …

Even least by 10 % OPM…Market cap should increase 150 cr…Dont know why throw away price for this…

whats wrong going on with this…even with current market cap…and current order book of 733 cr…they can get least by 10 % OPM…which means 70 cr…to current market cap of 300 cr…

why this much hammering on this stock…No promopters problem…where it is going wrong…

going down with crude price which is the main driving factor

how does alphageo connects to crude oil down?..utilmately it is not using crude as raw material…and also…even if crude down or up…india planning to have new data requirement to make india atleast some proof from crude up or down…how does creude matters to alphageo…i am compleltly clue less.

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Infact I have noticed ceo and other management studies also in same field which gives confidence …but I am clue less why this much huge fall…anything wrong with promoters?

Its d/e is also less than 0.5…really not able to find any rational why this much falll…

I may be dumb…please throw some light if any one having clues

I have noticed two tenders are pending in petrowatch realted to seismic 2d data…by dec 30th…

so which means grwoth intact for alphageo…dont know what i am missing here

They need diesel for operations. So, higher crude prices impact their margins. Apart from that there is no direct impact. One opinion is that if crude price is high then Indian Government will encourage local drilling to get rid of higher import bill. However, another opinion earlier was that Government will use savings from lower crude prices to promote local drilling.

I didn’t like unusually high promoter’s salary in latest annual report. In addition to this lack of revenue visibility after FY20 and overall market sentiment brought down the price.

after fy 20 also…they will get projects…please see latest petro tenders…every time they are giving tenders these times…and also they are in other countries…i think in georgia…where they executed couple of projects…

please see thier employe retention…very less attrition rate which is required …

I dont understand how much promoter taking salary out of profits…i mean percentage

Salary for MD and Joint MD together is 9.64 Crores on a PAT of 54 Crores. They have taken maximum permissible salary to the last digit for FY17 as well as FY18 and then other benefits like dividend, interest on loan, rent etc. On first look doesn’t seem to be minority shareholders friendly. On top of that there is no clarity on it’s future earnings growth from long term perspective. Tenders has to result in order wins of good value for market to rerate. At a time when so many good quality small cap stocks available at single digit PE, it is unlikely to get rerated any time soon.

I know little bit more…but inline with earnings…did they sold any shares…no…

I am ok with this…if they really show some progress and growth in bot top and bottom lines…and grabbing more tenders for next leg apart from current pending 800 cr