Aban Offshore Limited (ABAN) AI Stock Analysis

• Market Cap: ₹1.09B
• Dividend Yield: N/A
• Average Volume (3M): 5.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -5.08%
• EPS Growth: -7.53%
• Country: IN
• Employees: 31
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -52.67
• Shares Outstanding: 58,365,322
• 10 Day Avg. Volume: 4,726
• 30 Day Avg. Volume: 5,994
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 1.64
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ₹33.00 ▲(26.29% Upside)

Aban Offshore Limited's stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's financial health is concerning, with significant leverage and consistent losses. Technical analysis indicates a bearish trend with oversold conditions. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates efficient cost management in core operations, which can support profitability if other expenses are controlled.

Positive Free Cash Flow

Positive free cash flow growth suggests improving liquidity and potential to reinvest in business operations or reduce debt.

Long-term Contracts

Long-term contracts offer revenue stability and predictability, reducing exposure to short-term market volatility.

Negative Factors

Declining Revenue Trend

A declining revenue trend indicates challenges in maintaining market share or demand, potentially impacting long-term growth prospects.

High Leverage

High leverage increases financial risk, limiting flexibility and increasing vulnerability to interest rate changes or economic downturns.

Consistent Losses

Consistent losses highlight operational inefficiencies and financial instability, challenging the company's ability to sustain operations long-term.

Aban Offshore Limited Business Overview & Revenue Model

Company Description

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 various offshore drilling rigs, 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.

How the Company Makes Money

Aban 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.

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	4.62B	4.76B	4.00B	3.97B	5.98B	10.69B
Gross Profit	3.89B	3.92B	3.04B	2.66B	3.65B	7.07B
EBITDA	3.47B	3.64B	-1.06B	628.11M	-9.11B	-6.92B
Net Income	-9.05B	-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	1.92B	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	254.02B	269.35B	253.87B	240.24B	224.81B	214.42B
Stockholders Equity	-254.02B	-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: 26.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 26.13 is above the 20-day moving average (MA) of 22.28, below the 50-day MA of 30.19, and below the 200-day MA of 41.23, indicating a bearish trend. The MACD of -3.60 indicates Negative momentum. The RSI at 22.02 is Positive, neither overbought nor oversold. The STOCH value of 20.07 is Neutral, 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
SEAMECLTD	71 Outperform	₹27.24B	30.97	―	―	-12.66%	-44.61%
DOLPHIN	69 Neutral	₹18.11B	34.20	―	―	212.48%	135.64%
JINDRILL	66 Neutral	₹15.76B	4.69	―	0.18%	34.80%	252.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HINDOILEXP	58 Neutral	₹19.95B	14.13	―	―	-16.59%	-16.91%
DEEPINDS	52 Neutral	₹25.74B	-65.45	―	0.67%	55.21%	-128.34%
ABAN	39 Underperform	₹1.09B	-0.10	―	―	-5.08%	-7.53%