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Aban Offshore Limited (IN:ABAN)
:ABAN
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Aban Offshore Limited (ABAN) AI Stock Analysis

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IN:ABAN

Aban Offshore Limited

(ABAN)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
₹40.00
▼(-2.39% Downside)
Aban Offshore Limited's stock score is primarily impacted by its financial performance, which is weak due to consistent losses and a heavily leveraged balance sheet. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, reflecting the company's financial struggles.

Aban Offshore Limited (ABAN) vs. iShares MSCI India ETF (INDA)

Aban Offshore Limited Business Overview & Revenue Model

Company DescriptionAban Offshore Limited (ABAN) is a prominent player in the offshore drilling sector, primarily focused on providing drilling services to the oil and gas industry. The company operates a fleet of offshore drilling rigs, including jack-up rigs and deepwater semi-submersibles, catering to both domestic and international markets. With a commitment to operational excellence and safety, Aban Offshore supports exploration and production activities for various energy companies, enhancing the efficiency and effectiveness of their drilling operations.
How the Company Makes MoneyAban Offshore Limited generates revenue primarily through the provision of drilling services, which includes leasing its drilling rigs and associated equipment to oil and gas companies on a contractual basis. The company typically enters into long-term contracts, which provide a steady stream of income. Key revenue streams include day-rate charges for rig rentals, mobilization fees, and additional services such as maintenance and technical support. The financial performance of Aban Offshore is influenced by factors such as global oil prices, demand for drilling services, and the company's ability to secure contracts with major oil producers. Strategic partnerships and collaborations with other industry players also contribute to its earnings potential, allowing for expanded operational capabilities and market reach.

Aban Offshore Limited Financial Statement Overview

Summary
Aban Offshore Limited faces significant financial challenges. Despite some improvement in cash flow, the company's profitability remains a concern with consistent losses. The heavily leveraged balance sheet poses risks, with negative equity indicating financial distress. While there are some positive signs in cash flow, the overall financial health of the company remains precarious.
Income Statement
25
Negative
Aban Offshore Limited has shown a declining revenue trend over the years, with a significant drop in net income. The company has consistently reported negative net income, indicating it is not profitable. The gross profit margin is high at around 82.46%, but the net profit margin is deeply negative due to the substantial net losses. EBIT and EBITDA margins have fluctuated, with recent improvements in EBITDA, but they remain concerning.
Balance Sheet
15
Very Negative
The balance sheet reveals a highly leveraged structure with total debt significantly exceeding stockholders' equity, resulting in a negative equity position. The debt-to-equity ratio is not calculable due to negative equity, highlighting financial instability. The company’s ability to meet long-term obligations is concerning, with minimal equity cushioning against liabilities.
Cash Flow
40
Negative
Cash flow statements show some improvement, with the latest free cash flow being positive and a remarkable growth from the previous year. However, operating cash flow has been inconsistent. The ratio of operating cash flow to net income is not meaningful given the negative net income, though free cash flow improvements are a positive sign.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.62B4.76B4.00B3.97B5.98B10.69B
Gross Profit3.89B3.92B3.04B2.66B3.65B7.07B
EBITDA3.23B3.64B-1.06B628.11M-9.11B-6.92B
Net Income-9.05B-8.89B-13.18B-10.91B-21.77B-19.73B
Balance Sheet
Total Assets0.0015.33B15.15B17.27B29.68B46.19B
Cash, Cash Equivalents and Short-Term Investments1.92B2.02B435.07M1.49B864.45M722.45M
Total Debt0.00156.97B153.08B151.35B152.49B151.85B
Total Liabilities254.02B269.35B253.87B240.24B224.81B214.42B
Stockholders Equity-254.02B-254.02B-238.72B-222.97B-195.12B-168.23B
Cash Flow
Free Cash Flow0.001.38B-894.17M1.30B-4.35B5.82B
Operating Cash Flow0.001.39B-723.44M1.31B-4.34B6.79B
Investing Cash Flow0.00175.54M-110.37M13.99B2.06B112.65M
Financing Cash Flow0.00-91.84M-216.13M-14.70B2.53B-6.20B

Aban Offshore Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price40.98
Price Trends
50DMA
43.43
Negative
100DMA
47.35
Negative
200DMA
45.25
Negative
Market Momentum
MACD
-0.75
Negative
RSI
47.28
Neutral
STOCH
73.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABAN, the sentiment is Neutral. The current price of 40.98 is below the 20-day moving average (MA) of 41.20, below the 50-day MA of 43.43, and below the 200-day MA of 45.25, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ABAN.

Aban Offshore Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹21.77B18.98-13.53%-19.71%
69
Neutral
₹21.56B14.45-49.37%-26.26%
69
Neutral
₹15.87B6.660.17%31.27%187.19%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
64
Neutral
₹15.26B30.09481.64%258.51%
52
Neutral
₹30.64B17.440.64%45.21%-152.68%
42
Neutral
₹2.42B-0.279.00%26.00%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ABAN
Aban Offshore Limited
41.44
-22.76
-35.45%
IN:DEEPINDS
Deep Industries Limited
473.75
40.70
9.40%
IN:DOLPHIN
Dolphin Offshore Enterprises India Ltd.
378.00
-147.00
-28.00%
IN:HINDOILEXP
Hindustan Oil Exploration Co., Ltd.
163.00
-36.40
-18.25%
IN:JINDRILL
Jindal Drilling & Industries Ltd.
574.25
-22.07
-3.70%
IN:SEAMECLTD
SEAMEC Limited
862.65
-416.00
-32.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025