Aban Offshore Ltd. (Code: 523204) (Rs.750.10) is engaged in providing oil field services for offshore exploration and production of hydrocarbons in India and abroad. With 21 offshore assets, it is among the top ten offshore drilling asset owners in the world. It possesses fifteen jack-up offshore drilling rigs, three drill ships, one floating production platform and a jack-up rig & drill ship each on bare boat charter. It is among the few global companies to facilitate oil exploration at water depths ranging from 250 ft to 7000 ft and drilling depths ranging between 20,000 ft and 30,000 ft. Having its footprint globally across 10 nations, the company boasts of serving leading global and domestic E&P companies such as ONGC, Shell Brunei, Shell Malaysia, Cairn Energy, Petronas Carigali, Exxon Mobil, Chevron, Hardy Exploration, Oriental Oil Dubai, ROC Oil China, and GSPC to name a few. Due to new vessel deployment and higher charter rate, it may clock a consolidated turnover of Rs.3250 cr. with NP of Rs.500 cr. This will translate into an EPS of Rs.129 cr. on its diluted equity of Rs.7.75 cr. Meanwhile due to likely distress selling by FIIs, its share price of company has tumbled down to Rs.1000 level from a high of Rs.5500 in January 2008. Hence the currently scrip is trading at a P/E multiple of merely 8, which is grossly cheap for a company of such calibre. Keep accumulating at sharp declines.
Source: Moneytimes (Internet)
