Aban offshore may slip to 950-960…….
Aban Offshore may slip to Rs 950-960 with market downturn movement in next couple of weeks/month.
The price behaviour of Aban Offshore which has been happening in the past couple of months, which has moved from Rs 250 to as much high as Rs 1,250 mainly because of the re-rating and the momentum. But now the negative news coming in for the company that three of their assets are lying idle, even five of their assets have been deployed for on a very short duration with re-pricing coming in the FY10 – all this things and when you take a call on FY09 results giving an EPS of close to Rs 145 – that’s gives a PE multiple of 7. When you have a uncertainty on the future earning for the company, may be for a FY10 or FY11 with the CDR package of rescheduling of Rs 14,000 crore debt pending in all those things, probably you feel that may be four-digit is the right price where you don’t see much upside. So may be this can be seen as becoming more a trading stock where one can buy the stock at Rs 1,000 or sell on a rise at about Rs 1,060-1,070 or may be to Rs 1,110. So I think may be for next couple of weeks this stock should rule in this price band of Rs 1,000-1,100 or may be on the lower side if market turns out to be negative could fall to about Rs 950-960.
I have personally got benefited by selling it out at Rs.1259, which were purchased on lower rates earlier.
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