Short Term Buy Call For Aban Aban Offshore
Stock market analyst Ashwani Gujral is of the view that the stock of Aban Offshore can be purchased with a stop loss of Rs 3440 for a short-term target of Rs 4500.
If stock markets remain positive, the investors can achieve the said target within a period of 5-6 weeks. The stock, on Friday, closed at Rs 3765.50 on the Bombay Stock Exchange (BSE).
The stock of the company has touched 52-week high of Rs 5555 and a low of Rs 1527.7 on BSE.
The company has recorded net Sales of Rs. 16907.37 lacs for quarter ending on 31 Dec 2007 against Rs. 12614.5 lacs for the quarter ending on 31 Dec 2006. Net Profit for the same period stood at Rs. 4776.72 lacs, as against Rs. 2078.79 lacs for the quarter ending on 31 Dec 2006. Operating profit for the quarter grew handsomely by 32.2% to Rs 914 million, primarily because of 43.6% decline in insurance cost. With the boost from the other income (up 343% YoY), Aban`s Q3FY2008 pre-exceptional net profit increased by a staggering 130% to Rs 478 million.
Aban last 6 contracts have been concluded at better than expected day rates and also it has recently added a semisubmersible Bullford dolphin to its fleet. Factoring these two events the analysts have upgraded their earnings estimates for Aban by 25% for FY2009 and 22% for FY2010. The EPS estimates now stand at Rs 406 for FY2009 and Rs 551 for FY2010.
The company’s board has allotted 810 (Eight Hundred and Ten only) Equity Shares of Rs.2/- each under Employee Stock Options Scheme (ESOS 2005). The above allotment includes 600 shares were allotted to one Non-executive Director.
Other stocks from the same sector that looks good for short term trading includes ONGC, GAIL and Cairn India.
