Deep Industries (DIL)


(paresh.sarjani1) #204

International footprints established

First project… Completed…


(paresh.sarjani1) #205

Updates on conference call…

Positives

  • Biggest news is international footprint in Middle East. Order was executed and completed worth USD 4M.
    Continue to expect more of this.
  • IPM (Integrated Project Management) started …5 wells digged so far…30 more to go in same financial year…
  • Company expects good orders on basis of continuosly rising import of LNG and government’s concentration on pipeline gases in many cities
  • Demerger approved by stock exchanges, SEBI approval expected by month end…and then NCLT…overall 4-5 months to go still…
  • Debt is reduced they say… from next quarter we can expect low interest expense compared to Q1 (this quarter)
  • COmpany will be borrowing 150 crore…to keep aside…in case new orders are coming internationally or domestically
  • Revenue won’t be affected much even if we don’t see order wins in next two quarters but if we see wins, then revenue may increase :slight_smile:
  • Total order book is 600 crores (150 crores ONGC order which is in sub-judice and 450 crores other orders)

Negatives
-Interest cost is high due to conversion of buyer’s credit to term loan (as per RBI directions)
-ONGC’s dispute order is not contributing anything to revenues at this point (which from financials looks positive). But in case high courts order is in favour, this may be re-instated to Deep Industries. Value is around 150 crores

  • Judgement on ONGC dispute is awaited with no timelines

Summary

  • Yes ONGC dependency is slowly…slowly disappearing…which is good sign…

Disclosure
Holding (15% of portfolio)


(paresh.sarjani1) #206

Investor meet intimation …


(Raghu) #207

can we find the transcript or the outcome of this anywhere?


(paresh.sarjani1) #208

Audio recording is available on research bytes


(Raghu) #209

Unable to download or listen from researchbytes. the site is very buggy. i have been trying to make this website to work from long but no luck.


(paresh.sarjani1) #211

This report is not visible fully but it says ONGC has removed the ban for Deep


(ferozk) #212

If so, then it is a very good news but it is not reflecting in the price which is less than the book value.


Sintex (Demerged) - textile business
(vikrantmehta888) #213

Did anyone attend the AGM? Any update on what is happening in the company?


(paresh.sarjani1) #214

Board meeting for evoting on Demerger


(skg) #215

Does anyone have link to AGM meeting for Q1 2019? I think i read somewhere that Deep Industries name is clear from ONGC case. But it is not confirmed. Anyone has any update on this?


(vikrantmehta888) #216

Can someone please explain what is happening in deep industries? Is demerger going to be followed by delisting?
If ONGC ban is revoked, why is there no reflection in share price?
At PE of 4 and a dividend paying company, what is the reason for pessimism in the stock?
Would be really thankful if someone knowledgable throws light on the real value in Deep industries.


(prabhatg1) #217

CBI Inquiry on Promoter in Past
ONGC’s hurdle and plus business also i guess making stock low


(ferozk) #219

Demerger is approved but there is no clearity in what ratio shares will be allotted and the minimum holding period for the entitlement.


(paresh.sarjani1) #220

Deep has done price volume breakout of long term resistance 130…

Let me know if anyone attended conference call?

I was not much impressed with results… don’t know what’s cooking


(Raghu) #221

can we find the concall trasnscript anywhere?


(nirajshah85) #222

Hello @ferozk,
Came across an article on the Demerger activity. It gives some insight on the shareholding pattern changes.

Article - Deep Industries demerges oil & gas service business

According to the article the share exchange ratio is 1:1 . Also the promoters and minority shareholders holdings shall be the same in both the companies.


(ferozk) #223

Thanks for the information.


(paresh.sarjani1) #224

I think demerger fever is leading to share spikes as well as absence of anticipated negative outcome on CBI ONGC issues …

If anyone is aware about anything else than this… please post

Below latest order award from ONGC as it continues to do business with Deep


(ferozk) #225

Looks good days are ahead as orders from ONGC started coming and dermerger is on the way but do not understand why the stock price is not rising.