Deep Industries Limited

Energy — Oil & Gas E&P · NSE

₹755.90+₹8.45 (+1.13%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Deep Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Deep Industries Limited provides oil and gas field services in India.

IndustryOil & Gas E&P

SectorEnergy

Employees838

Annual revenue₹891 Cr

How does it make money?

Turns over ₹891 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation. Each of its 838 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.4%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 24.0% and earnings to grow about 17.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.0%

Est. earnings growth+17.3%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +161% while net margin moved -44% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+161%

Margin effect-44%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.60 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

48/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.4x

3Y Median

22.9x

40 monthly readings · mean 21.4x · range 12.7x–30.8x

Sector Median

6.9x

median of 4 sector peers

🟡Currently trading close to its 3y median of 22.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 241% above the peer median of 6.9x.

vs. its own history

Fair

22.9x median over 40 months · +2%

vs. sector peers

Expensive

6.9x median of 4 peers · +241%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.3x

PEG

1.75

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 42.1% to 46.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 10.5% to 6.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 190% over 3 years, from ₹70 Cr to ₹203 Cr.
🔴High leverageFinancial
Debt/Equity of 9.61x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 42.1% to 46.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.61x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 241% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.7% CAGR
Latest reported year was 39.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 44%✓ 46.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹34 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹4,838 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹32.26

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

6.7%

Weak

Low return on total capital employed

Debt/Equity

9.61x

High

High leverage

Revenue Growth (YoY)

39.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹34 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

33.1%

Good

Healthy core-business profitability

Net Margin

21.3%

Good

Strong bottom-line conversion

Current Ratio

2.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.60

Defensive

Steadier than the market

52W Range Position

86%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

761.6 / 726.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹341 Cr	₹427 Cr	₹576 Cr	₹891 Cr	+37.7%
EBITDA	₹144 Cr	₹187 Cr	₹262 Cr	₹410 Cr	+41.8%
EBITDA Margin	42.1%	43.7%	45.5%	46.0%	—
PAT (Net Profit)	₹123 Cr	₹124 Cr	-₹90 Cr	₹180 Cr	+13.4%
EPS	₹19.28	₹19.35	₹-14.08	₹28.12	+13.4%
ROE	9.0%	8.6%	-5.0%	9.0%	—
ROCE	10.5%	9.5%	-1.4%	6.7%	—
Total Debt	₹70 Cr	₹160 Cr	₹205 Cr	₹203 Cr	+42.7%
Free Cash Flow	-₹25 Cr	₹38 Cr	-₹0 Cr	₹34 Cr	—

🟢 Revenue has grown at 37.7% a year over 3 years.

🟢 EBITDA has grown at 41.8% a year over 3 years.

🟢 EBITDA Margin has risen from 42.1% to 46.0% over 3 years (+3.9 pts).

🟢 PAT (Net Profit) has grown at 13.4% a year over 3 years.

🟢 EPS has grown at 13.4% a year over 3 years.

🟡 ROE has held roughly flat at 9.0% over 3 years.

🔴 ROCE has fallen from 10.5% to 6.7% over 3 years (-3.7 pts).

🔴 Total Debt has grown at 42.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹25 Cr to ₹34 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,595 Cr

Total Liabilities

₹483 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

₹270 Cr

Capex

-₹236 Cr

Shareholding (proxy)

Institutional Holding

1.6%

Insider Holding

67.2%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

21 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹675

-10.7% vs CMP

Target Range

₹675 – ₹675

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

2 positive2 mixed2 general

Deep Industries seeks ₹670 crore RPT and dividend approval at Sep 1 AGM

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Deep Industries Q1FY26 Results: Unaudited financials published

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Praj Industries vs Kernex Microsystems (India) vs Deep Industries

Univest, 14 Oct

There's A Lot To Like About Deep Industries' (NSE:DEEPINDS) Upcoming ₹2.50 Dividend

Simply Wall Street, 17 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

DEEPINDS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Deep Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑