Profit For Sure- Aban Offshore

Aban offshore an offshore company is on high demand on its new contract with Venture drilling. It is a fundamentally strong script present at very discounted rate.
FUNDAMENTAL ANALYSIS:-
The company has a market cap of more than 8,700 crs with a P/E of 43.36 and EPS of 53.19. Venture Drilling AS, a company in which a subsidiary of Aban Offshore Ltd (Aban) has a 50% shareholding, has signed a 18 month contract with Maersk Oil Angola, at an operating day rate of US$495,000 after withholding tax. Although about 100 rigs (jack-ups, semi-submersible and FPSO) are likely to be delivered in the next three years, we believe demand would be strong enough to absorb incremental supply. Aban has clocked the highest operating margins in the industry at a global scale. Further, the growth rate expected for Aban over the next couple of years is higher than most of its peers.

TECHNICAL ANALYSIS:-
The stock is trading at a steep discount of 40-45% compared to its global peers based on FY09E and FY10E P/E multiples. It is at present below its 30 dma and may look technically week, but offshore companies has a great future and can bounce back shortly. The stock has witnessed a high of 5,555 Rs and no at very discounted rate.

ADVICE TO INVESTORS:-
It is recommended for short-term investors the stock at the current levels and on declines for the target given below. Based on above analysis targets estimated arei) Short term – 2540-2560 Rs. for positional traders with stop loss of 2240 Rs. ii) Medium term – 3100-3150 Rs. for investors, Once it crosses 2700 Rs.and sustain there.iii) Long Term – 4200-4300 Rs. for investors.
Note: - All above views are mine and before investing investors should apply their con sense and do it at their own risk.
HAPPY INVESTING