Deep Industries (DIL)


(paresh.sarjani1) #143

Again small order from ONGC…
http://www.bseindia.com/xml-data/corpfiling/AttachLive/aa12af3d-6681-4c58-9858-e76df3233593.pdf

Doesn’t it represent faith in company?

If anyone has attended AGM …can you throw some light???


(anantshri_gupta) #144

I cant seem to understand why the stocks been falling since the ONGC order cancellation announcement… ONGC has given Deep Ind further orders post that and this sector is also supposed to be picking up… Is there any fundamental change in the business here?


(Meetesh) #145

chrome://external-file/N0914DEEPINDWXLXIV.pdf


(anantshri_gupta) #146

Having trouble accessing the file. Could you pls post a different link?


(Amit Jain) #147

All in all, there is only one problem with Deep Inds, the ONGC contract being cancelled. Ups and downs are a part and parcel of every business. However, the management can still be counted upon to show a turnaround. Afterall, it is not a child play to set up such a niche industry as Deep’s and then shut shop if one company withdraws support.

From a retail investor point of view, the question that needs to be asked is, with such a big factor of ONGC withdrawing contract, at what price DEEP is to be bought?


(anantshri_gupta) #148

Any short term debt level guidance by management?


(Aneeshraj) #149

This news will boost the company in Future?

Because Deep Industry lease Drilling rigs to oil and gas companies.


(neo-th3-one) #150

Does anyone know the number of join tomorrow’s Q2FY18 con call? Will be thankful if you can share.


(Raj) #151

Please send an email to Company Secretary. They will send you the invite quickly. I have interacted with him.

Disc: Not invested. Sold after the ONGC issue surfaced.


(neo-th3-one) #152

You know what, I did that. But the CS asked me for some client ID, which I don’t have. I informed this to the CS and have not heard back since. So, if anyone is planning to dial in then plz share the number.


(Bheeshma Sanghani) #153

amongst the newsflow around renewables & EVs etc, newsflow around exploration activities seems to have taken a backseat. However, the fact of the matter is that exploration activities have increased quite significantly in india over the past 20 years. Drilling for oil & gas took a severe beating between 2014-2016 due to the fall in oil prices and have picked up in 2017 again.

Here is a chart of the average rig count in india since 1982 containing both offshore and onshore rigs. India is a heavyweight in terms of O&G prospecting in the Asia Pacific region with a 53% market share of the total rigs in operation with 114 rigs in operation in Oct 2017 as against 34 of China.

image

This in stark contrast with the overall O&G prospecting activities for the world, which is showing a declining trend. Here is a similar chart for the world.

image

The basic takeway is the drilling activities are increasing in India and but are reducing or have bottomed out globally.


(saranyan) #154

I attended the concall today and these are some of the points the management discussed:

  • ONGC dispute is Sub-Justice, Tentatively verdict is expected by next month end according to the management.
  • Management has guided that they will achieve turnover of ~Rs 315 crores with current operating margins of ~55% for this FY.
  • Current order book size is ~Rs 650 Crores to be executed over the next two years. This includes the disputed ONGC order worth Rs 150 Crores.
  • They continue to receive orders from ONGC even in the last quarter, Management says ONGC still one of the top clients.
  • The company has bid for a lot orders, But due to a temporary slowdown they bids have not been processed by the companies clients.
  • Slowdown particularly felt in compression and dehydration division, Rig division is operating normally.
  • Management expects to get more orders in the last two quarters of this FY. They are confident that there will be more orders since oil is trading > $60 a barrel.
  • The company is also bidding for works in the middle east due to the vast opportunities present there.

(kauban) #155

@VB1 thanks for sharing your detailed thesis on DIL. Could you throw some more light on the point you make on promoter risks regarding criminal cases from 2006? Do you know the nature of these cases?


(James Sebastian) #156

I am in invested first by a small tracking position DIL last year mostly by looking at rear view mirror of past growth in sales/profit in FYI 2016 and 2017. Feeling ONGC issue as a temporary setback, I increased my position to 3% of PF by averaging down during the fall in June and in August. Now 7 months passed after news of ONGC came out. Court order yet to come I think. Revenue guidance for CY came down from ~350 crores (25% from FY earnings) to ~315 crores (13% YoY). When I increased the stake, I do see some of you exited or reduced the stake in DIL. @VB1, @Meetesh @raj1968 @Mridul what’s your take on DIL as on date ? Do you see any green shoots ?

Why I ask these ? I am actively considering an exit after reviewing Q3 results, if nothing positive emerges out of and by that results.


(Raj) #157

I exited because of the ONGC issue. Having a dispute with your largest client is never a good sign. Also, i read some article(paid subscriptions) which indicates that Deep management is no more in the good books of Oil ministry/ONGC.

These are my personal views/interpretations, which may turn out to be totally wrong.

Regards,
Raj


#158

(Yatharth) #159

Could anyone attend to concall? I just missed.


(Vanshikgupta90) #160

Has anybody attended concall today ? Pls share some details. Thanks in advance.