South West Pinnacle Exploration Ltd. (SOUTHWEST) AI Stock Analysis

• Market Cap: ₹5.88B
• Dividend Yield: 0.4%
• Average Volume (3M): 367.73K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.27
• Revenue Growth: 56.33%
• EPS Growth: 160.76%
• Country: IN
• Employees: 602
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.80
• Shares Outstanding: 29,830,011
• 10 Day Avg. Volume: 285,405
• 30 Day Avg. Volume: 367,733
• PEG Ratio: 0.19
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 12.22
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹211.00 ▲(8.26% Upside)

South West Pinnacle Exploration Ltd. has a strong financial foundation with robust revenue growth and improving cash flow metrics. The technical analysis indicates strong momentum, but caution is advised due to overbought signals. The valuation suggests the stock may be overvalued, which could limit upside potential.

Positive Factors

Revenue Growth

Revenue growth above 56% recently reflects widening customer adoption and expanding activity. Sustained top-line expansion supports capacity investments, spreads fixed costs, and strengthens pricing leverage, enhancing durable profitability and funding organic growth over the next several quarters.

Improving Cash Generation

Free cash flow turning positive and rising operating cash flow reduce reliance on external financing and increase reinvestment capacity. Durable cash generation supports capex, working capital and debt reduction, bolstering financial flexibility and resilience through industry cycles over the medium term.

Healthy Balance Sheet

A healthy balance sheet with an improving debt-to-equity ratio enhances financial resilience and lowers refinancing risk. Sustained equity cushion improves credit access and gives management flexibility to invest, pursue opportunities or weather downturns without sacrificing core operations.

Negative Factors

Residual Debt Risk

Despite leverage improvement, meaningful remaining debt can pressure cash flow if demand weakens or margins compress. Higher interest costs or refinancing needs would divert cash from growth initiatives, constrain strategic flexibility and increase vulnerability to commodity or cycle-driven shocks over coming quarters.

Margin Optimization Needed

While margins have improved, the company acknowledges further optimization is required. Persistent cost pressures or operational inefficiencies could cap sustainable margins; failure to achieve additional margin expansion would limit long-term profitability and free cash flow generation despite top-line growth.

Industry Cyclicality

Operating in oil & gas equipment and services exposes the company to cyclical capex and commodity-driven demand swings. Structural cyclicality can produce revenue volatility, uneven asset utilization and planning challenges, making steady cashflow and capacity utilization harder to sustain over multiple cycles.

South West Pinnacle Exploration Ltd. Business Overview & Revenue Model

Company Description

South West Pinnacle Exploration Limited provides drilling, exploration, and allied services to coal, ferrous, nonferrous, and atomic and base metal mining; and water and unconventional energy industries in India. It offers coal and mineral exploration services, such as wireline core drilling, reverse circulation drilling, large diameter drilling, directional drilling; and coal bed methane exploration and production drilling services. The company also provides aquifer mapping services for hydro-geological companies; geological and geophysical, workover rig, and 2D/3D seismic exploration services; and integrated exploration services, including geophysical logging, surface geophysical, and topographic surveys, as well as geological field consultancy and allied services. It owns 35 operational rigs. South West Pinnacle Exploration Limited was incorporated in 2006 and is based in Gurugram, India.

How the Company Makes Money

South West Pinnacle Exploration Ltd. generates revenue primarily through contracts for exploration and drilling services. Key revenue streams include fees for geological surveying, drilling operations, and consulting services provided to mining and energy companies. The company may also earn income from joint ventures and partnerships with other firms in the mining sector, allowing for shared investments in exploration projects. Furthermore, revenue can be bolstered by securing long-term contracts with clients, which provide stable cash flow and enhance the company’s ability to scale operations efficiently.

South West Pinnacle Exploration Ltd. Financial Statement Overview

Summary

South West Pinnacle Exploration Ltd. demonstrates solid financial performance with strong revenue growth and improving profitability metrics. The balance sheet is robust, with effective debt management and favorable equity returns. Cash flow metrics are on an upward trajectory, enhancing the company's financial stability.

Income Statement

South West Pinnacle Exploration Ltd. has shown strong revenue growth over the years, particularly noticeable in the most recent year with a substantial increase. The gross profit margin has remained robust, indicating effective cost management. Net profit margin improvements reflect enhanced profitability, although there is room for further optimization. EBIT and EBITDA margins have been stable, showing consistent operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a positive equity ratio, suggesting a strong financial position. The debt-to-equity ratio has been improving, indicating effective leverage management. Return on equity has been favorable, reflecting good returns for shareholders. However, the total debt level, while decreasing, still represents a potential area of risk if not managed carefully.

Cash Flow

Cash flow from operations has shown consistent improvement, supporting ongoing capital expenditures and reducing financing needs. The free cash flow has turned positive recently, indicating better cash management. The ratios of operating and free cash flow to net income suggest efficient cash conversion, although further enhancement could bolster financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.80B	1.33B	1.24B	1.18B	1.04B
Gross Profit	724.98M	793.62M	429.30M	625.42M	893.95M	787.65M
EBITDA	341.40M	334.97M	277.21M	241.34M	273.49M	264.46M
Net Income	169.60M	164.26M	82.70M	89.71M	109.21M	102.21M
Balance Sheet
Total Assets	0.00	2.76B	2.35B	1.98B	1.89B	1.79B
Cash, Cash Equivalents and Short-Term Investments	410.14M	410.14M	6.09M	3.20M	29.69M	5.35M
Total Debt	0.00	646.76M	926.64M	645.15M	510.22M	495.88M
Total Liabilities	-1.71B	1.05B	1.13B	840.13M	842.84M	843.95M
Stockholders Equity	1.71B	1.71B	1.21B	1.14B	1.05B	941.65M
Cash Flow
Free Cash Flow	0.00	244.56M	-158.74M	-108.77M	10.43M	92.95M
Operating Cash Flow	0.00	266.69M	186.79M	35.04M	96.64M	165.08M
Investing Cash Flow	0.00	-42.69M	-378.31M	-135.38M	-30.86M	-55.92M
Financing Cash Flow	0.00	-35.68M	194.41M	73.85M	-41.44M	-110.59M

South West Pinnacle Exploration Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 194.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOUTHWEST, the sentiment is Positive. The current price of 194.91 is above the 20-day moving average (MA) of 184.64, above the 50-day MA of 190.88, and above the 200-day MA of 154.52, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 87.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SOUTHWEST.

South West Pinnacle Exploration Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SELAN	72 Outperform	₹19.38B	18.80	―	―	0.34%	-12.23%
SOUTHWEST	71 Outperform	₹5.88B	22.77	―	0.40%	56.33%	160.76%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
UNIDT	65 Neutral	₹3.82B	25.02	―	0.89%	-15.39%	8.75%
ALPHAGEO	47 Neutral	₹1.34B	-8.10	―	3.53%	―	―
OILCOUNTUB	45 Neutral	₹2.45B	-6.04	―	―	70.45%	35.56%
ABAN	39 Underperform	₹1.25B	-0.11	―	―	-5.08%	-7.53%

South West Pinnacle Exploration Ltd. Corporate Events

South West Pinnacle Closes Trading Window Ahead of December Quarter Results

South West Pinnacle Exploration Ltd. has announced the closure of its trading window for insiders from 1 January 2026 until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading regulations. The board meeting date for considering and approving these financial results will be communicated later, and the move underscores the company’s adherence to regulatory norms governing insider trading and corporate disclosure for market participants.

South West Pinnacle Gains Accreditation for Coal Block Exploration in Jharkhand

South West Pinnacle Exploration Ltd. has been accredited as a prospecting agency to explore its own coal block in Jharkhand, India. This accreditation, granted by the Ministry of Coal, allows the company to commence exploration and development activities, which is expected to accelerate the coal block’s development and production. The recognition enhances the company’s credibility and positions it competitively in the industry, potentially leading to lucrative contracts and revenue growth.

South West Pinnacle Gains Accreditation for Coal Block Exploration in Jharkhand

South West Pinnacle Exploration Ltd has been accredited by the Ministry of Coal, Government of India, as a prospecting agency for its coal block in Jharkhand. This accreditation allows the company to commence exploration activities, enhancing flexibility, competition, and technological advancement in coal exploration, while supporting India’s energy security and the Atmanirbhar Bharat initiative.

South West Pinnacle Exploration Ltd Announces Financial Results

South West Pinnacle Exploration Ltd has submitted a newspaper advertisement to the National Stock Exchange of India and the Bombay Stock Exchange, detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. This announcement is in compliance with SEBI regulations and aims to keep stakeholders informed about the company’s financial performance, potentially impacting investor confidence and market positioning.