Mehabe score: 2 G Factor: 0 Piotski Score: 7 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 0 and Piotski score of 7.
Description
Aban Offshore is engaged in the business of Offshore Oil Drilling Services.Site:ABANMain Symbol:ABAN
Stock trades at 37.8, below its 50dma 43.54. However it is trading above its 200dma 36.61. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 43.54.
The 52 week high is at 52.60 and the 52week low is at 21.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -20.34% over past five years.
-Contingent liabilities of Rs.1124.14 Cr.
– has high debtors of 183.71 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 14.4x. Hind.Oil Explor. trades at the industry’s max P/E of 56.02x. ABAN trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. ABAN has a G-Factor of 0 and Piotski scoreof 7.
– Average 1 month return for industry is 4.2%. The max 1- month return was given by Hind.Oil Explor.: a return of 37.82 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 193.0 cr compared to Rs 297.0 cr for period ended Jun 2020, a fall of 35.0%
Operating Profits reported at Rs 54.0 cr for period ended Jun 2021 vis-vis 120.0 for period ended Jun 2020 .
Operating Margins contracted -1242.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -43.93 compared to Rs -219.85 for previous quarter ended Mar 2021 and Rs -36.66 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 966.0 cr for period ended TTM vis-vis sales of Rs 1069.0 cr for the period ended Mar 2021, a fall of 10.7%. The 3 year sales cagr stood at 4.4%.
Operating margins shrank to -93.0% for period ended TTM vis-vis -55.0% for period ended Mar 2021, contraction of 3800.0 bps.
Net Profit reported at Rs -2015.0 cr for period ended TTM vis-vis sales of Rs -1973.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 679.0 cr for period ended Mar 2021 vis-vis Rs -976.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 34% on a 1 Year basis vis-vis a return of -31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -15% vis-vis a compounded sales growth of -10% over the last 3 Years. – The compounded profit growth on a TTM basis is 78% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.09% vis-vis 0.08% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 52.05% vis-vis 52.06% for Mar 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -20.34% over past five years.
-Contingent liabilities of Rs.1124.14 Cr.
– has high debtors of 183.71 days.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 43.54 and is trading at 37.8. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
