Deep Industries Limited (DEEPINDS) AI Stock Analysis

• Market Cap: ₹22.24B
• Dividend Yield: 0.67%
• Average Volume (3M): 11.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 55.21%
• EPS Growth: -128.34%
• Country: IN
• Employees: 878
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 10.60
• Shares Outstanding: 64,000,000
• 10 Day Avg. Volume: 7,905
• 30 Day Avg. Volume: 11,520
• PEG Ratio: 0.20
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 5.47
• P/FCF Ratio: -46.58K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 39
• Revenue Forecast (FY): ₹8.30B

• Rating: 52 Neutral
• Price Target: ₹351.00 ▼(-22.74% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Deep Industries Limited's overall stock score is primarily impacted by its strong financial performance, despite the net loss in 2025. Technical analysis indicates bearish momentum, and valuation concerns arise from the negative P/E ratio and low dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Sustained top-line growth of this magnitude indicates expanding market share and stronger demand for E&P services. A larger revenue base supports economies of scale, improved bargaining power with suppliers, and provides capacity to fund reinvestment and backlog conversion over the medium term.

Operational Margin Strength

A near-50% EBIT margin reflects durable operational advantages—efficient field execution, pricing power, or a favorable service mix. High operating profitability provides resilience through commodity cycles and underpins potential recovery to net profitability as non-operating items normalize.

Conservative Leverage

Very low leverage and a strong equity base give the company financial flexibility to fund capex, absorb industry volatility, and pursue contracts or M&A without stressing liquidity. This conservative structure reduces refinancing risk across multi-month cycles.

Negative Factors

Net Loss / Profitability

Despite robust revenue and high EBIT margins, the net loss signals material non-operating charges, interest, tax, or one-offs eroding bottom-line returns. Persistent net losses weaken retained earnings and can limit the firm's ability to convert operating strength into shareholder value over months.

Negative Free Cash Flow

Negative FCF driven by heavy capex means internal cash cannot fully fund investments, pressuring liquidity or forcing external financing. Over a 2-6 month horizon, sustained negative FCF constrains strategic flexibility and delays deleveraging or dividend restoration.

Weak Return on Equity

A negative ROE indicates the company is not generating returns on shareholder capital. If earnings do not recover, capital allocation will remain inefficient, deterring long-term investors and limiting capacity to raise equity on favorable terms when needed.

Deep Industries Limited Business Overview & Revenue Model

Company Description

Deep Industries Limited engages in the oil and gas services business. The company provides air and gas compression; drilling and workover; gas dehydration, conditioning, and processing; and integrated project management services, as well as rental and chartered-hire of equipment and services. The company was formerly known as Deep CH4 Limited and changed its name to Deep Industries Limited in September 2020. Deep Industries Limited was founded in 1991 and is based in Ahmedabad, India.

How the Company Makes Money

Deep Industries generates revenue through several key streams, including the sale of its manufactured products, such as gas compressors and process equipment, which are essential for oil and gas operations. The company also earns money through service contracts and maintenance agreements that ensure the ongoing performance and reliability of its equipment. Additionally, Deep Industries may engage in partnerships with major players in the energy sector, providing customized solutions that cater to specific operational needs, which further enhances its earning potential. The company's focus on innovation and sustainability positions it favorably within the growing market for environmentally friendly industrial solutions, contributing to its overall financial success.

Deep Industries Limited Financial Statement Overview

Summary

Deep Industries Limited shows strong revenue growth and operational efficiency with high EBIT margins and a solid equity position. However, the net loss in 2025 raises concerns about profitability and cash flow stability. The conservative debt strategy provides financial stability, but focus is needed on converting operational gains into profitability and positive free cash flow.

Income Statement

Deep Industries Limited exhibited a strong revenue growth of 35% from 2024 to 2025, showcasing robust expansion in its operations. However, despite the increase in revenue and gross profit margin of 58.8%, the company reported a net loss in 2025, resulting in a negative net profit margin of -15.6%. The EBIT margin remained strong at 48%, indicating effective operational management, yet the negative net income suggests challenges in handling non-operational expenses or tax burdens.

Balance Sheet

The balance sheet reflects solid equity strength, with the equity ratio standing at 76% for 2025. The company's debt-to-equity ratio is low at 0.11, indicating a conservative approach to leverage and financial stability. However, the decline in net income has impacted Return on Equity, which turned negative. Overall, the balance sheet showcases a strong equity base with cautious debt management.

Cash Flow

Operating cash flow increased by 16.4% from 2024 to 2025, reflecting improved cash generation from core operations. However, free cash flow remained negative due to high capital expenditures, highlighting challenges in translating operational profitability into free cash flow. The operating cash flow to net income ratio is negatively impacted by the net loss, indicating a need for better alignment between profitability and cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.52B	5.76B	4.27B	3.41B	3.22B	1.94B
Gross Profit	3.24B	3.39B	1.63B	1.67B	1.48B	357.99M
EBITDA	2.81B	127.39M	1.97B	1.86B	1.19B	868.96M
Net Income	-683.34M	-901.03M	1.24B	1.23B	721.28M	647.69M
Balance Sheet
Total Assets	0.00	23.93B	19.11B	15.87B	12.60B	11.73B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.02B	1.68B	900.14M	684.57M	596.92M
Total Debt	0.00	2.05B	1.60B	698.74M	317.92M	408.92M
Total Liabilities	-19.15B	4.78B	3.84B	2.08B	1.30B	1.11B
Stockholders Equity	19.15B	18.20B	14.43B	13.79B	11.30B	10.62B
Cash Flow
Free Cash Flow	0.00	-676.00K	-359.00M	-252.85M	239.96M	763.17M
Operating Cash Flow	0.00	2.10B	1.80B	881.07M	546.41M	808.76M
Investing Cash Flow	0.00	-2.48B	-3.17B	-1.08B	-760.23M	-112.25M
Financing Cash Flow	0.00	279.40M	686.42M	285.44M	139.68M	-537.79M

Deep Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 454.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEEPINDS, the sentiment is Negative. The current price of 454.3 is above the 20-day moving average (MA) of 381.98, above the 50-day MA of 395.37, and below the 200-day MA of 456.59, indicating a bearish trend. The MACD of -10.64 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 8.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DEEPINDS.

Deep Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OIL	74 Outperform	₹787.20B	13.50	―	2.94%	-1.94%	-28.79%
JINDRILL	69 Neutral	₹12.92B	5.45	―	0.18%	34.80%	252.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HINDOILEXP	58 Neutral	₹17.30B	16.30	―	―	-16.59%	-16.91%
DEEPINDS	52 Neutral	₹22.24B	-149.49	―	0.67%	55.21%	-128.34%
ALPHAGEO	47 Neutral	₹1.29B	-8.81	―	3.53%	―	―

Deep Industries Limited Corporate Events

Deep Industries Wins ₹108-Crore GAIL Contract for Compression Facility at RT-USAR Plant

Deep Industries Limited has received a Notification of Award/Fax of Acceptance from GAIL (India) Limited for hiring a compression facility at the RT-USAR plant, a contract valued at approximately INR 108 crore. The domestic order, to be executed over 880 days and classified as part of the company’s ordinary course of business, strengthens Deep Industries’ project pipeline with a major public sector client and underscores its role as a key service provider in India’s gas infrastructure ecosystem, with no related-party implications disclosed.

Deep Industries Reports Gas Leak at Andhra Pradesh Well, No Injuries Reported

Deep Industries Limited has reported a gas leak incident at its Mori #5 well in Andhra Pradesh during workover operations carried out under ONGC’s production enhancement activities, after the well kicked and an uncontrolled flow was observed following re-perforation despite prior reservoir testing and safety measures. The company stated that there have been no injuries or loss of life, the area around the well has been secured, cooling operations have started, and senior teams from both Deep Industries and ONGC are working on controlling the well, indicating an active response to contain operational and safety risks for stakeholders in the field.

Deep Industries Announces the Passing of Independent Director

Deep Industries Limited has announced the passing of Mr. Ashokkumar Ratilal Patel, a Non-Executive Independent Director, on December 13, 2025. Mr. Patel played significant leadership roles that greatly benefited the company, and his unexpected demise is considered an immense and irreparable loss. The Board of Directors and employees have extended their deepest condolences to his family.