Aban Offshore - Recommendation for BUY

Sharekhan has maintained buy on the stock for a target price of Rs 4,829, an upside of 37.7 per cent. Aban Offshore, one of Asia's largest oil drilling companies, is seen benefiting from the increase in oil exploration and production activities globally. The robust demand environment is resulting in firm day rates for its assets. The company is also benefiting from the efforts taken to substantially ramp up the asset base through organic and inorganic initiatives. This would significantly improve its financial performance over the next few years.At the market price, the stock trades at 9.7x FY2009 and 7.3x FY2010 estimated earnings.

Resources – Economictimes.com