Rs 900 crore order book: This micro-cap oil exploration company reports stellar quarterly results; stock hits upper circuit!

The stock is up by 81 per cent in 6 months, up 36 per cent in 1 year, 44 per cent in 5 years and gave multibagger returns of over 550 per cent in 1 decade.

Asian Energy Services Ltd is an oilfield service and reservoir imaging company, offering a suite of geophysical services specializing in land and well seismic services and operation and maintenance services for oilfields. It is one of the few companies providing end-to-end services in the upstream oil segment.

On Tuesday, one of the Top Gainers on BSE, shares of Asian Energy Services Ltd surged 5 per cent upper circuit to Rs 132.80 per share. At the closing bell, shares of the company were trading at Rs 132.65 per share, up 4.86 per cent with a spurt in volume by more than 2.09 times on BSE.

The company's stock price has experienced a sudden surge, driven by its outstanding Quarterly Results. Here are the details:

• Total Income for Q1FY24 reached Rs 49 crore, marking a remarkable QoQ growth of 61 per cent and YoY growth of 71 per cent.
• EBIDTA for Q1FY24 stood at Rs 1 crore, turning positive after four quarters of operation.
• Loss for Q1FY24 amounted to Rs 3 crore, significantly improved from Q4FY23's Rs 7 crore and Q1FY23's Rs 8 crore losses.
• As of June 30, 2023, the order book amounts to Rs 900 crore, comprising 44 per cent O&M, 41 per cent infra, and 15 per cent seismic projects.

Commenting on the Q1FY24 results, Mr Kapil Garg, Managing Director of Asian Energy Services Limited, said, “The company’s quarterly performance has started showing improvement and we are confident of much better performance going forward. Company efforts of diversification have yielded good results with contracts from various reputed clients in all segments. The company have secured a few Seismic contracts recently and hopes to further build our order book in this segment. We are very excited about the prospects of the Indrora field and hopeful to make it big. Production from the field has started picking up and we remain committed to increasing it further. It will reflect in Company’s financial performance in the coming quarters. We are confident about the delivery of contracts in hand and focusing on the efficient execution thereof. We are also confident to further strengthen our growth trajectory and bolstering our position as a dominant player in the sector.”

Earlier, the company received LOA from Gail (India) Limited for hiring services for the acquisition of seismic data in Block RJONHP20211 from Gail (India) Limited in Rajasthan. The value of LOA is Rs 16.69 crore. The contract duration is 6 months. 

The company has a market cap of over Rs 500 crore. The stock is up by 81 per cent in 6 months, up 36 per cent in 1 year, 44 per cent in 5 years and gave multibagger returns of over 550 per cent in 1 decade. Investors should keep an eye on this Small-Cap stock.