Natural Gas scenario in India – Out of all fossil fuels available natural gas is cleanest fossil fuels. It is used as feedstock in production of plastic, fertilizers and other important organic chemicals which are used commercially along with used as fuel to generate electricity, used as heating in industrial and commercial units. Natural gas is also used as cooking in domestic house and fuel for vehicles. The economic development in india is interrelated to its requirement of energy, the demand of oil and gas is projected to increase more which will make the industry aggressive investment. India is third largest energy consumer at global level. The requirement of energy is forecasted to increase as rapid pace that energy requirements of all main economies supported by strong economic growth. The demand of energy in India is forecasted to double from 753.7 mteric tonnes in 2017 to 1,516 metric tonnes by 2035. Furthermore, the contry’s contribution in global primary consumption is forecasted to grow by twice till 2035.
The consumption of natural gas in India will rise by three times in next 10 years. The consumption of natural gas is projected to grow at a CAGR of 4.18% to 143.08 million tonnes by 2040 from 58.10 million tonnes in 2018.
The most basic part is increase in requirement of gas compression and production and processing equipment is increasing worldwide consumption of natural gas. As more gas is used, the requirement for compression, production, and processing equipment rises. There is increment in natural gas compression at global level specifically due to increase in demand at world level and priority of natural gas as fuel in future because it is combination of environmental soundness energy.
Air Compressor Industry – The market size of Indian air compressor is valued at $1.84 billion in 2018 and is projected to increase at a CAGR of 6.92% during forecasted period of 2020-2025. Improvement in modern technology in air compressors such as developing better compressor and rotary screw compressors have huge impact on compression capabilities of equipment and is projected to bring Indian air compressor market size in India. Furthermore, the increment in consumption of strong and energy effective equipment is forecasted to grow demand of Indian air compressor industry.
The rise in adoption of lighter air compressor and replacement of older equipment with new models has build opportunities for air compressors market. The rise in consumption of air compressors such as rotary screw compressor, reciprocating compressor, centrifugal compressors in end user industries such as oil and gas, food, plant engineering ha sresulted in growth of air compressor market. In this article, we will learn interesting information about Deep Industries Ltd Share Target, market cap, ROCE, ROE, industry, promoter, shareholding pattern, revenue, headquarters, and net profit.
Deep Industries Ltd – Key Points
Name of the promoter
Mr. Manoj Shantilal savla
Industry
Oil & Gas Exploration and Production services
Established
1991
Headquarters
Ahmedabad, India
Employees
1636
Debtors turnover ratio
2.90 times
Inventory turnover ratio
10.15 times
Deep Industries Ltd – Statistics
Market cap
Rs 2,713 crores
ROCE
11.7%
ROE
8.20%
Return on Net worth
13.28%
Debt- equity ratio
0.11 times
Interest coverage ratio
21.14%
Book value
Rs 284
About Deep Industries Ltd
The company has achieved expertise in offering various Oil & Gas support services since 3 decades. The portfolio of services includes Natural Gas Dehydration, Natural Gas Compression, Natural Gas Processing, Gas field operations and services and Workover and Drilling Rigs Services, and Integrated Project Management Services. The company provides all services under one roof for requirement of Oil and Gas field operations and services. Its extensive portfolio of services is encouraged by wide variety of equipments used right from Exploration and Production to Mid Stream along with talented employees while managing precautions and best quality.
The company started its business in 90’s by leading Gas Compression services on charter hire basis and has further scaled into different services over a time period. The company has achieved top position by Charter hiring of Natural Gas Dehydration and is only Indian company providing comprehensive Project Management Services. The company has recently entered into EPC of entire Gas Processing Facilities as part of “Value Added Offerings” on Charter hiring basis and is first enterprise in the country to offer such kind of services.
Deep Industries Limited is involved in business of Oil and Gas field services and has achieved expertise in delivering Gas compression services, Gas Dehydration, and Workover services, and also has exprtise in Integrated Project Management Services. Moreover, the company has scaling its business through by executing genuine strategy by stepping into new services markets along with inorganic channels such as systematic partnerships and acquisitions. The company is in the process of spreading its wings by entering into offshore services. The company is developing and imrpving its business slowly through:
Recruiting talented staff having deep technical knowledge
Owns latest equipments, fuel effective to fulfill requirements of Oil and Gas sector
Providing best quality services by maintaining guidelines with huge performance
Conveniently and systematically located to service Oil and Gas markets in India and at global level.
Business segments
Gas Compression Services – The company is the largest service provider of Natural gas Compression across India on Chartered hire basis. The company has implemented different projects of natural gas compression with different public and private sectors companies in India over past 30 years. The company implements compression contracts by using turnkey approach which consists of installation, supply of equipment, commissioning and operation and manintenance of gas engine led by compressor packages. The company is able to offer genuine solutions to fulfill client’s requirement and budget. The company has developed its equipment fleet to provide broad variety of compression needs. Deep International DMCC, a subsidiary of company has acquired many Gas compression packages in USA to fulfill business needs in Middle East countries. The company has commenced implementing various projects in global markets.
Gas Dehydration, Conditioning and Processing – Gas Dehydration is a process whichh assures to remove water and moisture and heavy hydrocarbons out of natural gas before using it in pipleine to assure security of Natural grid. The company is top leader in offering Gas Dehydration Systems on develop, own, and manage basis in India on charter hire approach. The company is one of the largest Gas Dehydration Service Providers in India. The Gas Dehydration method is completed in two primary steps with the help of which we serially lower the water dew point and hydrocarbon dew point with less than 0′ C by eliminating water and heavier hydrocarbons from source gas to meet PNGRB requirements. The company has smoothly commenced Gas Dehydration units with capacity of LSCMD per unit in a record time and design packages to fulfill wide variety of uses with minimum charges needed. the company manages extensive stock of spares to safeguard any shutdowns as company knows the challenges of process and how it affect clients.
Drilling and Workover services – The company has attained strong position in the market in the segment of offering Drilling and Workover Rig services to different clients which includes Private and PSUs E&P companies and company has developed good past track record. The company has goal to scale Rig business in overseas market. The company has appointed Drilling contractor in Kuwait oil Company for offering Rigs. The company owns total 11 nos. of Drilling and Workover, Completion and Production on Charter, Rental and Dry Lease Hire Basis. The company has achieved noteworthy and successfully performed various projects for different operators and diversified regions across Ecosensitive areas, Deserts of India, and difficult terrain of Mountain Range Areas. the company has huge capacity to deliver all oilfield equipment related to Drilling, Workover, Completion and Production on Charter, Rental and Dry Lease Hire approach. The company has skilled experts and fully operatable fleet of drilling rigs and Workover Rigs and technologies provide for managing business operations and useful to implement and safely implement them at site.
Integrated Project Management services – The company has accepted Integrated Projected Management (IPM) as ready-to-use solution to drill and complete a well or number of wells under single contract. The company has capacity to offer range of niche services including high technical jobs and all services under single banner to enhance co-ordination, time and cost management. The company is first Indian to deliver integrated solutions. The company has started different services of oil and gas exploration since 2016 which can be known as amazing opportunity in this segment and unconventional energy which has huge potential in future. The company is one of the Indian incorporated companies who has amazing integration of offering services to Upstream and mid stream. The company has vast experience, knowledge, and best quality equipment which encourages to provide amazing results to challenging projects and fulfill strict requirements of clients. The IPM servives of company include:
Air Drilling
Surface Holde Drilling
Cementing
Hydro Fracturig and coiled tubing
Geophysical logging, wire line service
Well completion Services-Workover operations to productions
Charter Hiring of Entire Gas Processing – The company has commenced providing services such as supply, design, installation, regular operation and maintenance of production system, commissioning, to receive, deliver, and process hydrocarbons at custody transfer point which are manufactured from wells. The production of facility shows consistent efforts of company to provide various valuable services to clients as main player in Oil and Gas service sector. The idea of project is completely different, the project Jaya is unique from all other projects performed by company as in this project Entire Surface Facility and produced fluid processing channel from wellhead to the distribution point was supplied by company on charter hire basis.
Revenue and net profit
Particulars
FY-24 (Rs. in crores)
Sales
427
Expenses
260
EBITDA
167
Other income
30
Interest
8
Deprecation
34
Profit before tax
154
-Tax (%)
(19%)
Net profit
125
EPS in Rs
19.35
Balance sheet (FY-24)
Liabilities
Rs
Assets
Rs
Equity Capital
32
Fixed assets
979
Reserves
1,411
CWIP
220
Borrowings
160
Investments
142
Other Liabilities
303
Other assets
566
Total liabilities
1,906
Total assets
1,906
Shareholding pattern (March 2025)
Promoters
63.49%
FIIs
2.17%
DIIs
1.17%
Government
0.00%
Public
33.17%
Deep Industries Ltd – Watch Full Video
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Deep Industries Ltd Share Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
424
448
472
2026
475
512
548
2027
551
576
601
2028
606
647
687
2029
691
748
804
2030
808
1211
1614
2035
1616
1781
1945
2040
2424
2650
2875
Deep Industries Ltd Share Target – 2025
If market observes downward sentiments, the minimum projected price is anticipated to hit Rs 424. The average trading price is projected to hit Rs 448 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to touch Rs 472. The company is dependent on government-owned enterprises for major part of revenues. The company has diversified its business to oil and gas companies in India with portfolio of services including air and natural gas compression services, services connected with drilling and work over rigs, natural gas dehydration services. The company believes that in past and future, major part of revenue is received form clients out which major part is government-owned.
Deep Industries Ltd Share Target – 2026
If market observes bearsh sentiments, the minimum forecasted price is expected to reach Rs 475. The average trading price is projected to hit Rs 512 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 548. The services of company is taken by oil and gas companies to minimize capital expenditure of projects. The company has strong belief system that it is first one to take benefits of these services in industry. Moreover, company has conviction that oil and gas companies will consistently outsource specialised activities of gas compression and de-hydration to match global trends.
Deep Industries Ltd Share Target – 2027
If market faces bearish sentiments, the minimum projected price is estimated to hit Rs551. The average trading price is projected to hit Rs 576 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to hit Rs 601. The company has provided variety of services in different sectors fulfilling requirements of client base and assuring stability through variations in markets and trends. The company has taken benefit of fully mobile units which are flexible. The company can easily transport its resources to any part of world within few months. The company own 3 drilling rigs, 9 workover rigs, 11 dehydration units, and 61 gas compressor which is part of oil and gas field services business.
Deep Industries Ltd Share Target – 2028
If market observes downward signals, the minimum projected price is estimated to touch Rs 606. The average trading price is projected to hit Rs 647 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to Rs 687. The subsidiary of company is actively involved in pursuing sustainable offshore opportunities with huge promise to open best value in future. The company has vast experience in offering valuable services to clients which improves their revenue building ability along with profitability at large and offers diversified mix of service portfolio. Deep International DMCC is company located in Dubai a wholly owned subsidiary of Deep Industries. This international part of company is offering same Gas processing services to Africa, Middle East, and Asia. The company is involved in trading of tailored gas processing equipments.
Deep Industries Ltd Share Target – 2029
If market observes downward sentiments, the minimum projected price is estimated to hit Rs 691. The average trading price is projected to hit Rs 748 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to touch Rs 804.Dolphin Offshore Enterprises India limited – A step down subsidiary of Deep Industries and a top manufacturer in India delivering offshore services to Oil and Gas sector. At present main assets of Dolphin are refurbished has huge demand in the sector and is receiving EOI. Dolphin is projected to contribute a certain portion of group’s in future. Deep Offshore Drilling Service Private Limited – A subsidiary company of Deep Industries has entered into joint venture with Euro Gas Systems to increase technical skills and how to encourage gas field services.
Deep Industries Ltd Share Target – 2030
If market observes bearish sentiments, the minimum forecasted price is expected to reach Rs 808. The average trading price is projected to hit Rs 1211 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to hit Rs 1614.Deep Onshore Services Private Limited (DOSPL) – A wholly owned subsidiary of Deep Industries Ltd. DOSPL acquired Dolphin Offshore Enterprises Limited. It is systematic approach to acquire business by establishing footprint into offshore services segment. Breitling Drilling Private Limited – A subsidiary of Deep Industries Limited was acquired in July 2023 and the company is presently not operating its business. The company is looking for opportunities to bid higher capacity Rigs tenders in JV with other qualified companies.
Deep Industries Ltd Share Target – 2035
If market faces downward signals, the minimum projected price is expected to hit Rs 1616. The average trading price is projected to hit Rs 1781 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to touch Rs 1945.RAAS Equipment Private Limited – A subsidiary of Deep industries Limited manufactures advance booster compressor packages with capacities of 22 KW and 37 KW that increases huge efficiency, minimal noise emissions and accurately engineered designs. These Booster compressors complete add regulatory mandates and fulfill strict criteria highlighted by PESO. The goal of Prime Minister and roadmap from PNGRB has supported diversification in this sector and supported to established strong footprint in leading equipment manufacturer for oil and gas industry.
Deep Industries Ltd Share Target – 2040
If market faces bearish signals, the minimum projected price is estimated to touch Rs 2424. The average trading price is forecasted to reach Rs 2650 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to touch Rs 2875. SAARC International FZ-LLC, based in Ras Al Khaimah Economic Zone, Dubai (UAE) is wholly owned subsidiary of Deep Industries Limited, incorporated in March 2024. The company is incorporated to perform various business activities in oil and gas Industry. The company has conviction that quality of employees is main reason for success of employees and is strong to equip with skills.
FAQs
Q1) Who is the owner of Deep Industries Ltd?
Ans – The owner of Deep Industries Ltd is Mr. Rupesh Savla who serves as Managing Director.
Q2) What does Deep Industries Ltd do?
Ans – The company is involved in business of Oil and Gas field services. The company has achieved expertise in providing Air and Gas compression services, drilling, and workover services, gas dehydration services and integrated project management services.
Q3) What is the turnover of Deep Industries Ltd?
Ans – The turnover of Deep Industries Ltd in FY-18 is Rs 313 crores which has increased to Rs 427 crores in FY-24.
Q4) What is the debt of Deep Industries Ltd?
Ans – The Long-term borrowings is Rs 104 crores and short-term borrowings is Rs 101 crores. The cash and bank balance is Rs 51 crores.
Q5) Who are the competitors of Deep Industries Ltd?
Ans – The competitors of Deep Industries Ltd are: ONGC, Oil India, Hindustan Oil Exploration Company, Asian Energy Services, Selan Explorations Technology.
Q6) When was Deep Industries Ltd listed?
Ans – The company was listed on BSE on 25th September, 2006.
Q7) Is Deep Industries Ltd a good share to buy?
Ans – Yes,Deep Industries Ltd is a good share to buy for long-term purposes. The net profit of company in FY-18 was Rs 2 crores which has increased to Rs 125 crores in FY-24. The share price of company in FY-21 was Rs 20 which has increased to Rs 421 in FY-24 generating returns of almost 1,945.68% in past 5 years.
