Asian Energy Services Ltd recorded a robust intraday performance on 28 January 2026, surging to a day's high of ₹253.7, marking an 8.42% increase from its previous close. The stock outperformed its sector and broader market indices, reflecting notable trading momentum and a reversal after two days of decline. However, as of 31 January 2026, the stock price has declined to ₹250.20, representing a decrease of ₹5.8 or 2.27%, as part of a broader trend with a total drop of 2.53% over the past two days.
Asian Energy Services has discovered oil at the onshore Mevad field in Gujarat following the drilling and testing of a new well. The well NM-01 was drilled to a total depth of 1,650 metres, encountering three hydrocarbon-bearing sand intervals—Mandhali, Sobhasan and Kalol. The well is currently producing about 100 barrels of oil per day (bopd) in the testing phase from Sobhasan sand, with test data indicating potential production rates of 125-130 bopd. The discovery was confirmed by Kapil Garg, MD, Asian Energy Services Ltd, who emphasized the company's strategic focus on disciplined, low-cost resource development.
The discovery is expected to significantly increase recoverable reserves from the field, as reported by The Hindu BusinessLine and ETEnergyworld. The Kalol-III reservoir has shown hydrocarbon indications based on logs and cuttings, and testing of this interval will be undertaken at an appropriate stage. Field partners plan to drill additional wells to evaluate the extent of the oil pool and assess the reservoir's development potential. The company expects the discovery to add incremental cash flows and aligns with its strategy of disciplined, low-cost resource development.
According to The Hindu BusinessLine and ETEnergyworld, oil produced from the Mevad well will be supplied to domestic refineries under offtake arrangements. Crude pricing will be linked to the Brent benchmark, ensuring market-aligned realisations. The project operates under a Revenue Sharing Contract, with Asian Energy holding a 50 per cent participating interest, Oilmax Energy holding a 10 per cent participating interest, and the remaining interest held by other partners. As confirmed by ETEnergyworld, the company expects the find to provide additional domestic oil production exposure with pricing linked to international benchmarks.
Asian Energy Services reported net sales of ₹215 crore and net profit of ₹23 crore for the quarter ending March 2025, with a market capitalization of ₹1,393 crore. The company's P/E ratio stands at 33.00, significantly higher than the industry average of 19, indicating an expensive valuation. The stock has generated a return of -20.57% over the past year, significantly underperforming the market which has seen a return of 7.95%. The company's Price to Book Value of 2.5 and Return on Equity of 10.57% reflect its current financial position, with the absence of domestic mutual fund investment at 0% suggesting institutional investor concerns about the current price levels.
