NSEI:ABAN

Stock Analysis Report

Executive Summary

Aban Offshore Limited, together with its subsidiaries, provides offshore drilling and production services to companies engaged in the exploration, development, and production of oil and gas in India and internationally.


Snowflake Analysis

Slightly overvalued with weak fundamentals.

Share Price & News

How has Aban Offshore's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABAN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

ABAN

1.2%

IN Energy Services

-0.07%

IN Market


1 Year Return

-58.0%

ABAN

9.8%

IN Energy Services

9.5%

IN Market

Return vs Industry: ABAN underperformed the Indian Energy Services industry which returned 9.8% over the past year.

Return vs Market: ABAN underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

ABANIndustryMarket
7 Day-3.2%1.2%-0.07%
30 Day-14.1%-2.0%-0.7%
90 Day-18.2%8.0%3.2%
1 Year-58.0%-58.0%10.7%9.8%11.5%9.5%
3 Year-90.5%-90.5%-25.2%-26.8%23.6%16.7%
5 Year-95.2%-95.2%42.4%39.3%35.4%22.9%

Price Volatility Vs. Market

How volatile is Aban Offshore's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aban Offshore undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABAN (₹22.5) is trading below our estimate of fair value (₹879.26)

Significantly Below Fair Value: ABAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABAN is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: ABAN is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABAN has negative assets, so we can't compare its PB Ratio to the IN Energy Services industry average.


Next Steps

Future Growth

How is Aban Offshore forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.9%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aban Offshore has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Aban Offshore performed over the past 5 years?

-66.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABAN is currently unprofitable.

Growing Profit Margin: ABAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ABAN is unprofitable, and losses have increased over the past 5 years at a rate of -66.6% per year.

Accelerating Growth: Unable to compare ABAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ABAN is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (110.3%).


Return on Equity

High ROE: ABAN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aban Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: ABAN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ABAN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ABAN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ABAN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: ABAN has a high level of physical assets or inventory.

Debt Coverage by Assets: ABAN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ABAN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ABAN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Aban Offshore's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ABAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ABAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ABAN is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABAN's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.3yrs

Average management tenure


CEO

Reji Abraham (53yo)

15.6yrs

Tenure

0

Mr. Reji Abraham, BE, PGDM serves as Managing Director of Aban Offshore Limited since July 19, 2004. Mr. Abraham served as the Managing Director of ALCO of Aban Singapore Pte. Ltd. He is one of the Promote ...


CEO Compensation Analysis

Compensation vs Market: Reji's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Reji's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Reji Abraham
MD & Executive Director 15.6yrsno data9.64% 126.6m
Chakkungal Gopalkrishnan
Deputy MD18.5yrs₹14.25m0.074% 972.0k
S. Balaji
Compliance Officer0yrs₹3.59m0.0032% 42.3k
Parameswaran Venkateswaran Iyer
Deputy MD & Executive Non Promoter Director18.5yrs₹14.25m0.036% 468.2k
Steve Ogston
General Manager of Operations7yrsno datano data
Vijay Saheta
Vice President of Finance & Accounts17.1yrs₹4.35mno data
Vinod Pillai
Vice President of Human Resources & Administration5.8yrsno datano data
V. Ramasubramonian
Vice President of Business Development0yrsno datano data
S. Srinivasan
Senior Vice President of Corporate Planning0yrsno datano data
T. Karmakar
Deputy General Manager of Operations0yrs₹5.93mno data

11.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ABAN's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Reji Abraham
MD & Executive Director 15.6yrsno data9.64% 126.6m
Chakkungal Gopalkrishnan
Deputy MD18.5yrs₹14.25m0.074% 972.0k
Parameswaran Venkateswaran Iyer
Deputy MD & Executive Non Promoter Director18.5yrs₹14.25m0.036% 468.2k
Murari Pejavar
Non Executive Independent Chairman7.3yrs₹175.00kno data
K. Bharathan
Non Executive Independent Director16.2yrs₹170.00k0.0086% 112.5k
Ashok Rout
Non-Executive Independent Director7.3yrs₹195.00kno data
Deepa Abraham
Non-Independent Promoter Director5.4yrs₹145.00k6.92% 90.9m
Subhashini Chandran
Non Executive Independent Director5.4yrs₹155.00kno data

11.7yrs

Average Tenure

60yo

Average Age

Experienced Board: ABAN's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aban Offshore Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aban Offshore Limited
  • Ticker: ABAN
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: ₹1.313b
  • Shares outstanding: 58.37m
  • Website: https://www.abanoffshore.com

Number of Employees


Location

  • Aban Offshore Limited
  • Janpriya Crest
  • 113, Pantheon Road
  • Chennai
  • Tamil Nadu
  • 600008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523204BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1993
ABANNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1993
700099BSE (Mumbai Stock Exchange)10% CUM NON-CNV PREF INR10ININROct 2011

Biography

Aban Offshore Limited, together with its subsidiaries, provides offshore drilling and production services to companies engaged in the exploration, development, and production of oil and gas in India and internationally. It offers exploratory, drilling, hydrocarbons production, and manning and management services. The company owns and operates a portfolio of assets, including jack-ups, floaters/drill ships, and floating production units. It also engages in the ownership and operation of wind turbines for the generation of wind power. The company’s wind farms are located at Radhapuram, Pazhavoor, and Kavalkinaru in Tirunelveli District, Tamil Nadu. Aban Offshore Limited was incorporated in 1986 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:54
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.