Aban Offshore Limited (ABAN) AI Stock Analysis

• Market Cap: ₹2.54B
• Dividend Yield: N/A
• Average Volume (3M): 22.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 19.01%
• EPS Growth: 32.51%
• Country: IN
• Employees: 31
• Sector: Energy
• Sector Strength: 63
• Industry: Oil & Gas Drilling
• EPS (TTM): N/A
• Shares Outstanding: 58,365,322
• 10 Day Avg. Volume: 17,698
• 30 Day Avg. Volume: 22,857
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹43.00
• Price Target Upside: -1.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹43.00 ▼(-1.10% Downside)

Aban Offshore Limited's overall stock score is primarily impacted by its poor financial performance, characterized by consistent losses and a heavily leveraged balance sheet. Technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low stock score.

Positive Factors

Revenue Growth

A revenue growth rate of 19% indicates expanding operations and increased demand for services, which can lead to improved financial stability over time.

Cash Flow Improvement

Positive free cash flow growth suggests better cash management and potential for reinvestment in business operations, supporting future growth.

High Gross Profit Margin

A high gross profit margin of 82.46% indicates efficient cost management in core operations, providing a buffer against market volatility.

Negative Factors

Consistent Losses

Consistent losses reflect ongoing profitability challenges, limiting the company's ability to invest in growth and service debt.

Heavily Leveraged Balance Sheet

A heavily leveraged balance sheet increases financial risk, making it difficult to manage debt obligations and invest in future opportunities.

Negative Equity Position

Negative equity suggests financial instability, reducing the company's resilience to economic downturns and limiting access to capital markets.

Aban Offshore Limited Business Overview & Revenue Model

Company Description

Aban Offshore Limited (ABAN) is an India-based company specializing in offshore oil and gas drilling services. The company operates in the energy sector, providing a range of services including drilling, exploration, and production for oil and gas companies. ABAN's core offerings include the leasing of drilling rigs and offshore assets, as well as technical services related to offshore drilling operations.

How the Company Makes Money

Aban Offshore Limited makes money primarily through the leasing and operation of its fleet of offshore drilling rigs. The company's revenue model is based on long-term contracts with oil and gas exploration and production companies, who pay for the use of ABAN's drilling rigs and associated services. Key revenue streams include day rates for rig operation, mobilization fees, and technical service fees. ABAN may also generate income through strategic partnerships and joint ventures in offshore drilling projects, leveraging its expertise and assets to maximize earnings. Factors such as global oil and gas demand, rig utilization rates, and contract renewals significantly impact the company's financial performance.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.97B	4.76B	4.00B	3.97B	5.98B	10.69B
Gross Profit	4.30B	3.92B	3.04B	2.66B	3.65B	7.07B
EBITDA	2.24B	3.64B	-1.06B	628.11M	-9.11B	-6.92B
Net Income	-9.70B	-8.89B	-13.18B	-10.91B	-21.77B	-19.73B
Balance Sheet
Total Assets	0.00	15.33B	15.15B	17.27B	29.68B	46.19B
Cash, Cash Equivalents and Short-Term Investments	1.10B	2.02B	435.07M	1.49B	864.45M	722.45M
Total Debt	0.00	156.97B	153.08B	151.35B	152.49B	151.85B
Total Liabilities	243.46B	269.35B	253.87B	240.24B	224.81B	214.42B
Stockholders Equity	-243.46B	-254.02B	-238.72B	-222.97B	-195.12B	-168.23B
Cash Flow
Free Cash Flow	0.00	1.38B	-894.17M	1.30B	-4.35B	5.82B
Operating Cash Flow	0.00	1.39B	-723.44M	1.31B	-4.34B	6.79B
Investing Cash Flow	0.00	175.54M	-110.37M	13.99B	2.06B	112.65M
Financing Cash Flow	0.00	-91.84M	-216.13M	-14.70B	2.53B	-6.20B

Aban Offshore Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABAN, the sentiment is Negative. The current price of 43.48 is below the 20-day moving average (MA) of 45.40, below the 50-day MA of 47.55, and below the 200-day MA of 48.60, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 13.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ABAN.

Aban Offshore Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HINDOILEXP	69 Neutral	₹22.47B	15.06		―	-49.37%	-26.26%
JINDRILL	69 Neutral	₹17.45B	7.33		0.16%	31.27%	187.19%
DEEPINDS	68 Neutral	₹34.37B	17.44		0.57%	45.21%	-152.68%
SEAMECLTD	67 Neutral	₹23.68B	20.50		0.11%	-13.53%	-19.71%
Sector *	65 Neutral	$15.27B	7.59	4.09%	5.23%	3.88%	-62.31%
DOLPHIN	64 Neutral	₹16.25B	32.34		―	481.64%	258.51%
ABAN	41 Neutral	₹2.54B	―		―	19.01%	32.51%