Aban Offshore Lower Standalone profitability drags Q2FY12 nos BUY ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Aban Offshore

Lower Standalone profitability drags Q2FY12 nos

BUY

CMP: Rs436                                        Target Price: Rs522

---

n     Q2FY12 EBITDA at Rs4.6bn(-17.5% yoy ) below est of Rs4.8bn dragged by lower standalone proftability (standalone EBIDTA down 58% qoq) due to lower operating days for Aban IV

n     Standalone net loss of Rs0.7bn and higher consolidated depreciation & interest charges drag Q2FY12 APAT to Rs0.79bn (-15.5% qoq) -below estimates

n     Lower revenues from standalone business leads to earnings downgrade for FY12E/13E by -5.3% /-7.6%. We also lower our TP to Rs522 (Rs580 earlier) to factor in earnings downgrade

n     Only 2 rigs idle-see strong cash flow visibility -USD 400 mn CFO over FY11-13, leading to accelerated de-leveraging- Valuation at 5.9X FY13 EV/E & .6X P/B remain attractive-BUY