Alphageo (India) freezes at 20% upper circuit on strong growth outlook

The company said it has an order pipeline in excess of Rs 360 crore and hopes to secure some projects towards the close of the financial year, which will further bolster order book

Share of Alphageo (India) were locked in the 20 per cent upper circuit band at Rs 409.50, also its 52-week high, on the BSE on Monday on expectation of strong earnings growth during the financial year 2021-22 (FY22). Till 01:36 pm, a combined 914,000 equity shares had changed hands and there were a combined buy orders for 89,000 shares on the NSE and BSE.

Alphageo is India's largest onland integrated seismic services player in the private sector. The company is engaged in providing geophysical data acquisition, processing and interpretation services for oil and gas exploration companies. Its services include 2D and 3D geophysical and related services (geophysical data acquisition, processing and interpretation) for the oil and gas sector.

"The company has an order pipeline in excess of Rs 360 crore. In the second half of the financial year 2021-22, the company will focus on completing a major part of these projects. Moreover, we are hopeful of securing some projects towards the close of the financial year, which will further bolster our order book as we enter FY23," Alphageo said in FY21 annual report.

During the financial year 2020-21 (FY21), the Company completed part of the contract from Oil and Natural Gas Corporation (ONGC) for Acquisition of 2D Seismic Data in un-appraised on land areas of Indian Sedimentary Basins of India. The remaining study will happen in FY22.

Growing global demand, high value, declining production and constant pressure for finding new mineral deposits captivate not only India’s but also the world’s outlook towards strategically important minerals.

As a first step to increase India’s self reliance in minerals, the Government, through the Geological Survey of India, is inviting the private sector to undertake a survey of the Indian landmass to identify potential mineral deposits. This is providing interesting opportunities for players to widen their capability bandwidth, the company said.