Deep Energy Resources Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Deep Energy Resources Ltd trades at ₹312, in a confirmed uptrend and 69 weeks into that stage. That is +61.6% against its own 200-day average. It sits at 97% of a 52-week range of ₹140 to ₹317. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 6 straight weeks.

Today the stock is in a confirmed uptrend — week 69 of stage 2, confirmed. At ₹312 it trades +61.6% versus its 200-day average and sits at 97% of its 52-week range (₹140–₹317).

Against the market, two honest reads. Cumulative: over the last 8.5 years the stock moved +233% while the NIFTY 500 moved +289% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 6 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 98th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Deep Energy Resources Ltd trades at 2,247.5× P/E, about the priciest it has ever traded. Its long-run median P/E is 18.1×, measured across 7.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 2,247.5× is about the priciest it has ever traded, against a long-run median of 18.1× measured over 7.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −120.0% against a +109.6% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +31.8%/yr price move, ~−68.2%/yr came from earnings growth and ~+100.0 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Deep Energy Resources Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 0.8% — the per-curve reads carry the story. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

51.3/100 — rank 10 of 10 in Oil Drilling & Exploration · 38% evidence confidence · provisional, ranked below fully-evidenced peers

Deep Energy Resources Ltd scores 51.3 out of 100 against the 10 companies it is compared with in Oil Drilling & Exploration, ranking 10. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 16.8 + 8.2 + 10 + 16.3 = 51.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Deep Energy Resources Ltd reported ₹0.9 Cr of revenue in the Jun 24 quarter, +84.3% year on year. Over 10 years it has compounded at −29.4% a year. The last full year, FY24, came in at ₹2.8 Cr. The last four reported quarters add to ₹3.2 Cr.

Deep Energy Resources Ltd reported ₹0.9 Cr of revenue in the Jun 24 quarter, +84.3% year on year. Over 10 years it has compounded at −29.4% a year. The last full year, FY24, came in at ₹2.8 Cr. The last four reported quarters add to ₹3.2 Cr.

FY24 revenue came in at ₹2.8 Cr (−91.7% on the year), capping 10 years at −29.4% compound. The latest quarter (Jun 24) printed ₹0.9 Cr, +84.3% year on year.

Pace check: the last four quarters averaged −47.1% growth against the decade's −29.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −90.3% over the last 4 quarters against +5.0%/yr over the last 8 — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: −10.6% this quarter (+32.5 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Deep Energy Resources Ltd's operating margin is −10.6% in the Jun 24 quarter, +32.5 percentage points against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged −34.8% to 76.7%. The current quarter sits inside that band.

Deep Energy Resources Ltd's operating margin is −10.6% in the Jun 24 quarter, +32.5 percentage points against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged −34.8% to 76.7%. The current quarter sits inside that band.

The latest quarter's operating margin is −10.6%, +32.5 pp against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged −34.8%–76.7%.

Why the margin moved: operating margin went +32.5 pp year on year while gross margin went −24.3 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Deep Energy Resources Ltd posted a net loss of ₹0.2 Cr in the Jun 24 quarter. The full FY24 year was a loss of ₹1.0 Cr. That loss is 21.3% of the quarter's revenue. The same quarter a year earlier lost ₹0.4 Cr. 4 of the last 12 reported quarters were loss-making.

Deep Energy Resources Ltd posted a net loss of ₹0.2 Cr in the Jun 24 quarter. The full FY24 year was a loss of ₹1.0 Cr. That loss is 21.3% of the quarter's revenue. The same quarter a year earlier lost ₹0.4 Cr. 4 of the last 12 reported quarters were loss-making.

Jun 24 profit was ₹−0.2 Cr, null year on year. On the full year, FY24 printed ₹−1.0 Cr (−146.8%).

Pace comparison, last four quarters: profit −164.7% vs revenue −47.1%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 1,247% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 1,247% of Deep Energy Resources Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY23 that was ₹9.8 Cr of operating cash against ₹2.2 Cr of profit. After ₹19.0 Cr of capital spending, ₹−9.0 Cr was left as free cash.

FY23: operating cash of ₹9.8 Cr against reported profit of ₹2.2 Cr, leaving free cash of ₹−9.0 Cr after ₹19.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 1,247% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 1,247%: the cash cycle tightened 83 days between FY17 and FY23 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 81.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹81.0 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Deep Energy Resources Ltd's cash conversion cycle runs 4 days in FY23, down from 87 days in FY17. Capital spending ran ₹81.0 Cr over the last 3 years. At FY24 sales of ₹2.8 Cr each day of that cycle holds about ₹0.0 Cr, so roughly ₹0.0 Cr sits inside the business at any moment.

FY23: debtors at 4 days (an asset-light business — no inventory to speak of) — for a full cycle of 4 days, tighter than FY17's 87.

In money terms: at FY24 sales of ₹2.8 Cr, each day of the cycle holds about ₹0.0 Cr — so the 4-day loop keeps roughly ₹0.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹81.0 Cr over the last 3 fiscal years against ₹1.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹188 Cr (FY23) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 1%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Deep Energy Resources Ltd earns a ROCE of 1% in FY23. That is up from a trough of −0% in FY19. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 6.5% net margin on 0.06× asset turns.

FY23 ROCE is 1%, recovered from a FY19 trough of −0% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY23): 6.5% net margin × 0.06× asset turns × 1.48× balance-sheet leverage ≈ 0.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.09.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Deep Energy Resources Ltd carries ₹34.0 Cr of borrowings against ₹400 Cr of equity in FY23, a debt-to-equity of 0.09. Operating profit covers the interest bill 12×. Over 5 years borrowings went from ₹244 Cr to ₹34.0 Cr. Capital spending ran ₹81.0 Cr across the last 3 of those years.

FY23: borrowings of ₹34.0 Cr against equity of ₹400 Cr — a debt-to-equity of 0.09. Operating profit covers the interest bill 12×. Over 5 years borrowings went from ₹244 Cr to ₹34.0 Cr while capital spending ran ₹81.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Deep Energy Resources Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 1.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 68.0%; Foreign institutions: +0.0 points over 8 quarters to 1.7%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Deep Energy Resources Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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