Sold 75% of my holdings in deep today at 285. Would add back if the allegations made aren’t true. No point hoping! Protection of capital/profits is a priority.
I believe deep being only among few players providing services in the oil dehydration n compression segment, something w’d work out behind closed doors. Claims bout delisting…the way promoters have been raising their stake were asked last year about this…they skirted the question.
Anyone got the article link which is mentioned in the bse announcement?
There is a tug of war going on within ONGC over how to handle the problem with Deep Industries.
A direction by the vigilance department to take action to invoke the contract and take necessary steps to blacklist the company.
8But this attempt was fobbed off by senior ONGC personnel on the basis of the argument that more information and documentation would be needed before the last steps are taken.
8So far the evidence seems to point against Deep Industries
8ONGC has now decided to appoint a senior level officer to conduct an investigation
Find out more on the allegations and counter allegations circulating against Deep Industries
Deep Industries Ltd calls itself a leader in the gas dehydration business. It has a big chunk of this business from ONGC.
8But the company is now facing very serious allegations of misdemeanors in a set of ONGC contracts
8Highly placed sources said that there is move now to blacklist the company if further investigations find the misdemeanors to be true.
8But the company is lobbying very hard, and it has been able to elicit the support of a few key directors in fighting the move by the rest of the company to blacklist it.
Sold @ 260. I agree with you @Mridul that there is no point hoping. Such things can go anywhere. No doubt this company has bright prospects in absence of such risk factors. The management is capable and will try it best to come out of this after which it should be an attractive buy. But for now, I don’t want to take on a uncertainty with huge downside potential.
Here you go…
Scroll down and you will find part of the news. Full can be accessed only on subscription.
Regards,
Raj
The management has sounded very confident. Hopefully it reflects in the stock price as well
New ONGC contract for 1 year duration and value around 3.7 crores for Deep .
This is a positive development considering a recent show case notice from ONGC.
Global rig data: Utilization rates have begun going up
Jul 14: The latest worldwide data on offshore rig count and utilization rate shows an uptick for the first time after March, 2017.
8Data shows that the last one year has been a grim one for the industry: not only have the total number of rigs deployed fallen, but the utilization rate of those under deployment has come down too
8The data is compiled up to May, 2017
The website carries here the following month-wise rig data:
8Total utilization
8Total supply
8Total contracted
8Total working
8The rig types include jackups, semis and drillships
8Will the uptick result in an increase in rig rates? Not likely. Rates are likely to keep going down given the yawning gap between demand and supply, for now.
8Variable costing will be the norm when it comes to quotes by rig owners against RFQs.
Click on Reports for more Details indianpetroplus.com
precursor to the Q1 earnings? That is about 4 days away on Aug 4th…Today’s cut looks deep and the volume too scars me…Anyone with better insight into what is going on?
Bad results will not worry me so much as this issue with ONGC
NOTE: That link is from the month of June.
I hope there has not been any negative development on that front.
Deep industries tanked yesterday as ONGC sent termination notice for 2 contracts.
59ce0f59-266f-4cdd-9aa5-d5baebd8e9d4.pdf (225.3 KB)
Two questions in case someone has more clarity -
No clarity yet, but why wd a client terminate 2 contracts and wd then assign the same company other contracts in same vertical? Deep has said they would contest this decision in court, so things can turn ugly.
Reg order book impact, shud be close to 150-175 cr as 300 days grace period wd result in part of these tetminated project getting executed.
Deep Q1.pdf (566.1 KB)
Very good set of numbers.
Revenue up 13.5% YOY.
Net profit up 28% YOY.
Ebitda Margin around 59%.
Future uncertainty with ONGC remains a concern.
High Court suspended the cancellation order. Anyone attended the concall? What is mgmt take on this whole issue?
So it is positive news for the company. Do you have any source of this cancellation order?
Who are their competitors in the Gas Dehydration, Gas Compression, and Workover rigs business? Haven’t been able to identify yet and no mention in their AR…
How about L&T Hydrocarbon? Just a guess.
