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Aban Offshore Ltd (ABAN.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 30 days.
This is because the stock has traded off recently, making short term valuation much more compelling. Also, we believe
Aban may exercise its call option in the next week on the DDI04 bonds, giving an indication of a possible refinancing of its
debt, thereby possibly reducing one of the major concerns among investors.
Aban's promoters have also bought close to 0.75% of the company from the secondary market, giving us added
confidence in Aban's long-term prospects. In addition, issues relating to Deep Venture should be behind us with Aban
selling its stake in the asset for US$69mn, making a positive NPV of Rs8/share.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Attractive
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Aban Offshore Ltd (ABAN.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 30 days.
This is because the stock has traded off recently, making short term valuation much more compelling. Also, we believe
Aban may exercise its call option in the next week on the DDI04 bonds, giving an indication of a possible refinancing of its
debt, thereby possibly reducing one of the major concerns among investors.
Aban's promoters have also bought close to 0.75% of the company from the secondary market, giving us added
confidence in Aban's long-term prospects. In addition, issues relating to Deep Venture should be behind us with Aban
selling its stake in the asset for US$69mn, making a positive NPV of Rs8/share.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Attractive
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