Selan Exploration Technology Limited (SELAN) AI Stock Analysis

• Market Cap: ₹19.38B
• Dividend Yield: N/A
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.58
• Revenue Growth: 0.34%
• EPS Growth: -12.23%
• Country: IN
• Employees: 60
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 8.10
• Shares Outstanding: 35,162,357
• 10 Day Avg. Volume: 1,945
• 30 Day Avg. Volume: 2,867
• PEG Ratio: 0.10
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 3.56
• P/FCF Ratio: 20.20
• 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: 72 Outperform
• Price Target: ₹668.00 ▲(63.39% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth, high margins, low leverage and positive free cash flow). This is partially offset by overbought technical conditions that increase near-term volatility risk, and only moderate valuation support given the P/E and lack of dividend yield data.

Positive Factors

High Profitability Margins

Very strong gross, EBIT and net margins indicate efficient field operations and cost control, translating into durable cash generation. High operating profitability gives capacity to fund development, absorb price dips, and sustain returns over multiple quarters in an E&P business.

Very Low Leverage & Strong Equity Base

Extremely low leverage and a high equity ratio provide financial flexibility to fund capex or endure prolonged commodity weakness without solvency stress. This structural balance-sheet strength reduces refinancing risk and supports long-term investments and partnership opportunities.

Robust Cash Generation and Positive Free Cash Flow

Strong operating cash conversion and meaningful FCF indicate the company converts accounting profits into real cash that can fund development, repay debt, or be returned to shareholders. Durable cash generation underpins capital programs and resilience over a multi-month horizon.

Negative Factors

High Capital Expenditure Burden

Sustained high capex to sustain or grow production materially reduces discretionary cash and raises funding needs. Over 2–6 months, persistent capex pressure can constrain balance-sheet optionality, limit ability to return cash, and require external financing during downturns.

Commodity Price & Production Volume Sensitivity

Business model depends directly on oil and gas volumes and realized prices. Structural exposure means prolonged low commodity prices or production setbacks will meaningfully reduce revenue and margins, making earnings and cash flow inherently cyclical and less predictable.

Earnings Volatility / EPS Contraction

A large reported decline in EPS signals earnings volatility despite strong margin metrics. Over the medium term this can reflect cyclicality, non‑recurring items, or scale limits in smoothing commodity swings, reducing predictability of profits and investor confidence.

Selan Exploration Technology Limited Business Overview & Revenue Model

Company Description

Selan Exploration Technology Limited explores for and produces crude oil and natural gas in India. It holds rights to develop oilfields situated in Bakrol and Lohar, Gujarat; and Ognaj oil field and Karjisan gas field in Gujarat. Selan Exploration Technology Limited was incorporated in 1985 and is based in Gurugram, India.

How the Company Makes Money

SELAN generates revenue primarily through the sale of crude oil and natural gas produced from its exploration and production activities. The company operates on a profit-sharing model in collaboration with government entities and other partners, which allows it to earn a share of the revenue generated from the resources extracted. Additionally, SELAN may engage in joint ventures and partnerships that provide access to new markets and resources, further diversifying its income streams. The company's financial performance is also influenced by global oil prices, production levels, and operational efficiencies.

Selan Exploration Technology Limited Financial Statement Overview

Summary

Strong revenue growth (+55.84% in 2025) and high profitability (net margin 28.66%, EBIT margin 61.61%). Balance sheet is very low leverage (debt-to-equity 0.01) with a high equity ratio (81.54%), supporting stability. Cash generation is solid (positive free cash flow; operating cash flow to net income 1.70), but high capital expenditures and a slightly lower EBITDA margin temper the score.

Income Statement

Selan Exploration Technology Limited shows robust growth in revenue with a 55.84% increase in 2025 from the previous year, alongside improved profitability. The gross profit margin stands at 70.46% and the net profit margin at 28.66% for 2025, indicating efficient cost management. The EBIT margin is strong at 61.61%, reflecting high operational efficiency. However, EBITDA margin declined slightly to 52.47%, suggesting increased depreciation or amortization costs.

Balance Sheet

The company maintains a solid equity position with a debt-to-equity ratio of 0.01, indicating low leverage and potential for further borrowing if necessary. The equity ratio is high at 81.54%, showcasing a strong ownership structure. Return on equity improved to 15.75% in 2025, reflecting enhanced profitability. However, the company’s reliance on equity over debt may limit its return on investment potential.

Cash Flow

Operating cash flow has increased significantly, supporting a positive free cash flow of 455 million in 2025. The free cash flow to net income ratio is 0.62, showcasing reasonable cash generation relative to profits, although capital expenditures remain high. The operating cash flow to net income ratio of 1.70 indicates strong cash conversion, but cash flow stability could be impacted by high capital investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.45B	2.58B	1.66B	1.18B	773.09M	488.20M
Gross Profit	1.38B	1.52B	1.04B	589.30M	287.04M	108.47M
EBITDA	975.42M	1.35B	834.33M	627.10M	348.04M	210.46M
Net Income	670.10M	739.80M	327.41M	308.50M	99.24M	62.39M
Balance Sheet
Total Assets	0.00	5.76B	4.85B	4.27B	3.76B	3.76B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.37B	747.46M	1.85B	1.87B	1.74B
Total Debt	0.00	40.10M	35.01M	38.40M	4.30M	7.00M
Total Liabilities	-4.70B	1.06B	907.90M	669.30M	471.11M	492.37M
Stockholders Equity	4.70B	4.70B	3.94B	3.60B	3.29B	3.26B
Cash Flow
Free Cash Flow	0.00	455.00M	-870.17M	277.30M	-237.69M	309.34M
Operating Cash Flow	0.00	1.26B	716.73M	692.60M	-178.48M	355.96M
Investing Cash Flow	0.00	-1.25B	-691.35M	-717.80M	-61.27M	-17.23M
Financing Cash Flow	0.00	-7.80M	-7.24M	-3.80M	-79.50M	-78.33M

Selan Exploration Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 408.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SELAN, the sentiment is Positive. The current price of 408.85 is below the 20-day moving average (MA) of 454.39, below the 50-day MA of 425.56, and below the 200-day MA of 542.28, indicating a bullish trend. The MACD of 39.79 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SELAN.

Selan Exploration Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SELAN	72 Outperform	₹19.38B	18.80	―	―	0.34%	-12.23%
SEAMECLTD	68 Neutral	₹32.44B	16.99	―	―	-12.66%	-44.61%
HINDPETRO	67 Neutral	₹908.26B	5.90	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ASIANENE	55 Neutral	₹11.50B	35.27	―	0.34%	41.19%	-26.66%
ALPHAGEO	47 Neutral	₹1.34B	-8.10	―	3.53%	―	―
AAKASH	45 Neutral	₹364.50M	―	―	―	-3.89%	-74.11%