Deep Industries Limited (DEEPINDS) AI Stock Analysis

• Market Cap: ₹23.47B
• Dividend Yield: 0.67%
• Average Volume (3M): 11.52K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.23
• 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: ₹370.00 ▼(-18.56% 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 & Operational Margins

Sustained 35% revenue growth with a 58.8% gross margin and 48% EBIT margin demonstrates durable operational strength and scalable service economics. High operating margins suggest pricing power and efficient field-service execution, supporting mid‑term profitability if non‑operating drains are addressed.

Strong Equity Base & Low Leverage

A 76% equity ratio and 0.11 debt/equity indicate a conservative capital structure that provides financial flexibility. Low leverage lowers solvency risk, enables bidding on capital‑intensive contracts, and gives the company runway to invest or absorb cyclical downturns without immediate refinancing pressure.

Improving Operating Cash Generation

A 16.4% rise in operating cash flow shows improving cash conversion from core services, reflecting healthier core operations and working capital management. Stronger OCF supports reinvestment in equipment and project execution capacity, reducing medium‑term reliance on external financing if capex is optimized.

Negative Factors

Net Loss / Negative Net Margin

Despite strong operating margins, a 2025 net loss and -15.6% net margin indicate persistent non‑operating costs, tax, interest, or one‑offs eroding bottom‑line results. This structural gap between EBIT and net income weakens retained earnings and may constrain capital allocation and investor returns until resolved.

Negative Free Cash Flow from High Capex

Persistent negative free cash flow driven by heavy capex limits financial flexibility and can force external funding or reduced distributions. In capital‑intensive oilfield services, prolonged capex‑heavy profiles can pressure liquidity and delay conversion of operating strength into shareholder value.

Return on Equity Turned Negative

A negative ROE despite a strong equity base signals the company is not generating acceptable returns on shareholder capital. Over the medium term, negative ROE undermines the case for reinvestment, risks deteriorating investor confidence, and may force strategic changes to restore profitability.

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

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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	7.43B	5.76B	4.27B	3.41B	3.22B	1.94B
Gross Profit	3.57B	3.39B	1.63B	1.67B	1.48B	357.99M
EBITDA	3.29B	127.39M	1.97B	1.86B	1.19B	868.96M
Net Income	-393.29M	-901.03M	1.24B	1.23B	721.28M	647.69M
Balance Sheet
Total Assets	25.42B	23.93B	19.11B	15.87B	12.60B	11.73B
Cash, Cash Equivalents and Short-Term Investments	1.75B	2.02B	1.68B	900.14M	684.57M	596.92M
Total Debt	2.05B	2.05B	1.60B	698.74M	317.92M	408.92M
Total Liabilities	5.09B	4.78B	3.84B	2.08B	1.30B	1.11B
Stockholders Equity	19.31B	18.20B	14.43B	13.79B	11.30B	10.62B
Cash Flow
Free Cash Flow	-113.37M	-676.00K	-359.00M	-252.85M	239.96M	763.17M
Operating Cash Flow	1.14B	2.10B	1.80B	881.07M	546.41M	808.76M
Investing Cash Flow	-947.57M	-2.48B	-3.17B	-1.08B	-760.23M	-112.25M
Financing Cash Flow	-303.37M	279.40M	686.42M	285.44M	139.68M	-537.79M

Deep Industries Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEEPINDS, the sentiment is Positive. The current price of 454.3 is above the 20-day moving average (MA) of 354.45, above the 50-day MA of 372.17, and above the 200-day MA of 451.99, indicating a neutral trend. The MACD of -6.85 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹775.49B	14.43	―	2.94%	-1.94%	-28.79%
JINDRILL	68 Neutral	₹13.71B	-12.45	―	0.18%	34.80%	252.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HINDOILEXP	54 Neutral	₹17.60B	62.34	―	―	-16.59%	-16.91%
DEEPINDS	52 Neutral	₹23.47B	10.83	―	0.67%	55.21%	-128.34%
ALPHAGEO	47 Neutral	₹1.17B	-6.12	―	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.