Systematix Initiates Coverage on Deep Industries Stock
Systematix has initiated coverage on Deep Industries with a ‘Buy’ rating and a target price of Rs 693. The company is believed to be at an inflection point, with a strong order book and aggressive expansion plans in place. With a robust current order book of Rs 30 billion, equivalent to 5.2x FY25 revenue, Deep Industries is set for significant growth.
Factors Driving Growth
Several factors are expected to contribute to Deep Industries’ growth:
- Regular increase in the number of rigs
- Huge traction at gas processing facilities
- New Production Enhancement Contract from ONGC
- Turnaround in Dolphin Offshore enterprises
Strategic Positioning
Deep Industries has strategically placed itself in the oil and gas services industry with unique capabilities and minimal competition. Forecasting a strong revenue CAGR of around 31% over FY25-FY28, the company aims for an Ebitda margin of 44%-45% by FY28E.
Key Risks: Delay in execution, regulatory risk, drop in crude oil prices, currency exchange risk, etc.
Read the full report for more insights.
Disclaimer: This report is authored by an external party, and NDTV Profit does not vouch for its accuracy. Consult a financial expert for investment advice.
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