| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 3.63 | 230 |
| Graham Formula | 1.49 | 35 |
De Raj Group AG is a Germany-based company specializing in oil and gas equipment and services, primarily operating in Asia and Europe. The company focuses on monetizing oil and gas fields for National Oil Companies (NOCs), field stakeholders, and technology enterprises, particularly in Southeast Asia. With a diverse asset portfolio including jack-up rigs, drilling equipment, processing units, and marine infrastructure, De Raj Group supports offshore extraction and production for green fields, brown fields, and marginal fields. Headquartered in Cologne, Germany, the company plays a strategic role in the energy sector by providing tailored solutions to enhance hydrocarbon recovery. Its operations align with the growing demand for efficient oilfield services in emerging markets, positioning it as a niche player in the global oil and gas supply chain.
De Raj Group AG presents a mixed investment profile. On the positive side, the company generated €14.4 million in revenue and €1.12 million in net income for FY 2018, with a diluted EPS of €0.032. Its operating cash flow was strong at €10.3 million, though capital expenditures were significant at €7.4 million. The company operates in a capital-intensive industry with high cyclical risks tied to oil prices and exploration activity. While its focus on Southeast Asia offers growth potential, its relatively small market cap (~€103 million) and lack of dividend payments may deter income-focused investors. The absence of beta data makes risk assessment challenging, but its debt-to-equity position (€19.4 million in total debt) warrants caution.
De Raj Group AG operates in the highly competitive oilfield services sector, where scale and technological expertise are critical. The company differentiates itself by specializing in Southeast Asian markets, offering tailored solutions for marginal and brownfield projects that larger players may overlook. Its asset base, including jack-up rigs and processing equipment, provides operational flexibility but may lack the scale of global competitors. The company’s niche focus on monetization services for NOCs and regional stakeholders could be a strength in a recovering oil price environment, but its limited geographic diversification exposes it to regional risks. Financial metrics suggest moderate profitability, though its debt load could constrain growth compared to better-capitalized peers. The lack of dividend payouts may also limit appeal to conservative investors. Overall, De Raj Group’s competitive position hinges on its ability to sustain contracts in volatile energy markets while managing capital efficiency.