Valuations are attractive due to correction last year due to court case with ONGC. It is not yet clear whether the issue is not resolved or not but they are getting new orders.
Deep Industries bagged another order worth 18 crores from ONGC and in March 2 orders worth 184 crores from ONGC. Total 202 crores orders with in 2 months. Looks good days are ahead.
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Excellent analysis by @raj1968 and @VB1 so far.
Since ONGC issue is resolved, what are your views now? Especially at current valuations and also low probability of Deep getting re-banned by ONGC.
- @VB1 what is the source for promoters’ criminal cases in 2006? Are you sure that the Savla being referred to in your source is the same as Deep Industries’ Savla? Google mother says there are lots of Paras Savla(s) out there in the world.
- Regarding the insider trading article shared above, SEBI kicked off the case that social media likes can’t prove insider trading. Please find below article.
https://economictimes.indiatimes.com/markets/stocks/news/sebi-order-kicks-off-storm-social-media-links-cant-prove-insider-trading/articleshow/63919102.cms - Regarding the CBM blocks, since we own 26% of the business, does it mean we own 26% of the value of NG produced in that block? How do we come down to a value for this? Can some one please throw some light on the business model here?
- Any idea on why the revenue has fallen for Q2 and Q3 of FY19? The comments in Q2/Q3 results say that their Dubai subsidiary has booked significant revenues but no numbers yet. What is the definition of ‘significant’ according to management? If anyone is having access to conference call transcripts of FY19 quarters, please do share.
- What’s the status of demerger? No news post the scheme of arrangement. Q2/Q3 releases of FY19 just mention that it is approved by equity shareholders. When is the record date?
Answering some of my own questions after listening to Q3FY19 call in StockAdda.
Revenues from Dubai subsidiary is 46 crores and PBT margin around 33% => Profit before tax is around 14 crores.
On the demerger, they are still waiting for some approvals. Once that is done, we should be through. Hopefully we get more information in Q4 announcements.
4 - Consolidation numbers have not been published last quarter. So you can see them with this quarter results
5 - demerger is in pause state as creditors meeting is getting continuosly delayed since last few months as no one is attending it. It was supposed to be held on 10th May but no updates yet. Don’t be surprised if it’s delayed
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I’m not very comfortable with management’s integrity.
- Management continuously says in conference calls that new bids are coming but there is no revenue growth since two years.
- Similarly they keep promising on revenue from E&P since many years in the conference calls. Now they are saying we’ll see its revenues from Q3/Q4 FY20.
- Screenshots pasted from attached document.
IDBICapital-DeepIndustriesLimitedProspectus.pdf (1.6 MB)
- Screenshots pasted from below document.
http://cbi.gov.in/firs/2018/2018_pdf/2018_acb_visakhapatnam_firs/RC0362018A0007.pdf
Their standalone revenues have fallen after this incident in dehydration business and below article also suggests that their standalone revenues from dehydration business are falling.
Integrated Project Management will be a major growth driver for us: Paras Savla, CMD, Deep Industries, Energy News, ET EnergyWorld
Some points which support management’s integrity are:
- Used to purchase shares from the market few years ago
- Regularly pays dividends to minority shareholders
Inviting views on management’s integrity from other boarders…
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Stable set of numbers …good news is significant debt reduction… dividend 1.5 RS per share…
Good to see contribution of Dubai subsidiary around 10% of net profit …
Still undervalued at Less than TTM PE of less than 8
Did anyone attend the concall yesterday? Please do post some takeaways.
Good news is that Deep Industries got 2 more new orders worth 48 crores approx.
https://www.bseindia.com/corporates/ann.html?scrip=532760#
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Any discussion on results guys. Couldnt make head or tail out of it. Looks like demerger is on
Hello friends,
I am completely in the dark about what is happening with Deep Industries. No revenues since two quarters?
Can anyone shed some light?
Thanks.
No updates from the management after the demerger. Post demeger only shares of Deep Energy Resources Ltd. are traded whereas the demerged company shares have not been allotted. Does anyone have information on listing date of the demerged company?
Bro I think it takes time to list demerged entity which ranges from 3-4 months generally…
So wait for the listing
And yes as the record date of demerger is passed you can sell deep energy resources shares now … You will still get demerged company if you were share holder on record date
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Does any one have any updates on demerged entity listing… It has been lot of wait already on this…
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I have confirmation from the company that it has made an application for listing of shares to both NSE and BSE and has received in-principle approval from both Stock Exchanges in third week of March. SEBI approval is still awaited.
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@paresh.sarjani1 @reachvk @ferozk
I have an account with ICICI DIrect and on not receiving the new shares of the resulting company (my old DIL shares have been converted to Deep Energy Resources Limited), I mailed the company CS. She promptly responded that ‘we have already alloted the shares of resulting company on November 12, 2020 and if the shares not yet received by you, we hereby humble request you to contact your Concerned Depository Participant (DP) in this regard. The Company is in the process of listing of Deep Industries Limited, Resulting company’s shares.’
Are you able to see the resulting company shares (unlisted) in your Demat account already or will they be visible only after the shares are listed?
@njain1983 I have the same problem. I thought the shares were going to be alloted in the future.
Anyway I checked on bseindia or nseindia if deep industries was already listed or not.
Deep energy resources is but deep industries is not. When I search. I can’t find it !!!
The easiest way to check the truth of the company statement is to ask them to provide the link to their stock price on a stock exchange before we chase the depository
Maybe I wasn’t clear in my earlier post so stating again,
- company CS has not claimed that DIL shares have been listed, she said they are in the process of getting DIL shares listed.
- They have already alloted the shares (unlisted DIL shares) to the eligible shareholders.
So my query to this forum was - is anyone able to see the DIL (unlisted shares which the company claims to have allocated already) in their Demat/Trading account or will they only be visible to us after the DIL shares have been listed.