Check Before You Invest : Aban Offshore Ltd

Q: Which industry/sub-sector does Aban Offshore Ltd belong to?

Aban Offshore Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.

Q: Is Aban Offshore Ltd a good quality company?

Aban Offshore Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Aban Offshore Ltd undervalued or overvalued?

Aban Offshore Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 5.19, Historic Median: -. Price to Book, Current: -0.1, Historic Median: -0.31. Price to Sales, Current: 0.93, Historic Median: 3.25. EV to EBITDA, Current: 10.23, Historic Median: -4.76

Q: Is Aban Offshore Ltd a good buy now?

Aban Offshore Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Aban Offshore Ltd?

Aban Offshore Ltd revenue growth is 38.1% for FY-2025, which is above its 5-year CAGR of -12.33%, indicating faster growth.

Q: Gross Profit margin of Aban Offshore Ltd?

Aban Offshore Ltd Gross profit margin which is the profit after deduction of direct costs, is 156.3% for FY-2025, which is above its 5-year median of -145.3%, indicating increasing margins.

Q: Operating Profit Margin of Aban Offshore Ltd?

Aban Offshore Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 73.83% for FY-2025, which is above its 5-year median of -93.3% indicating increasing margins.

Q: Net Profit Margin of Aban Offshore Ltd?

Aban Offshore Ltd Net Profit Margin is 134.74% for FY-2025, is above its 5-year median of -148.22%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 156.3, Historic Median: -145.3. Operating Profit Margin (%), Current: 73.83, Historic Median: -93.3. Net Profit Margin (%), Current: 134.74, Historic Median: -148.22

Q: Return on Asset of Aban Offshore Ltd?

Aban Offshore Ltd Return on Asset is 38.29%, which is above its 5-year historical median of -15.77%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Aban Offshore Ltd?

Aban Offshore Ltd Return on capital employed is 0% for FY-2025, which is above its 5-year historical median of -43.26%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Aban Offshore Ltd

BSE: 523204 NSE: ABAN ISIN: INE421A01028

| Sector: Oil & Gas | Industry: Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Aban Offshore Ltd belong to?

Aban Offshore Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.

Q.2 Is Aban Offshore Ltd a good quality company?

Aban Offshore Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aban Offshore Ltd undervalued or overvalued?

Aban Offshore Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	5.19	-
Price to Book	-0.1	-0.31
Price to Sales	0.93	3.25
EV to EBITDA	10.23	-4.76

Q.4 Is Aban Offshore Ltd a good buy now?

Aban Offshore Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Aban Offshore Ltd?

Aban Offshore Ltd revenue growth is 38.1% for FY-2025, which is above its 5-year CAGR of -12.33%, indicating faster growth.

Q.2 Gross Profit margin of Aban Offshore Ltd?

Aban Offshore Ltd Gross profit margin which is the profit after deduction of direct costs, is 156.3% for FY-2025, which is above its 5-year median of -145.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Aban Offshore Ltd?

Aban Offshore Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 73.83% for FY-2025, which is above its 5-year median of -93.3% indicating increasing margins.

Q.4 Net Profit Margin of Aban Offshore Ltd?

Aban Offshore Ltd Net Profit Margin is 134.74% for FY-2025, is above its 5-year median of -148.22%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	156.3	-145.3
Operating Profit Margin (%)	73.83	-93.3
Net Profit Margin (%)	134.74	-148.22

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aban Offshore Ltd?

Aban Offshore Ltd Return on Asset is 38.29%, which is above its 5-year historical median of -15.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aban Offshore Ltd?

Aban Offshore Ltd Return on capital employed is 0% for FY-2025, which is above its 5-year historical median of -43.26%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Aban Offshore Ltd?

Aban Offshore Ltd Return on equity is 0% for FY-2025, which is below its 5-year historical median of 0.21%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aban Offshore Ltd?

Aban Offshore Ltd Cash conversion cycle is -1481 days, below its 5-year historical median of -166 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.28	0.15
ROE (%)	-	0.21
ROCE (%)	-	-43.26
Cash Conversion Cycle	-1481 days	-166 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Aban Offshore Ltd?

Aban Offshore Ltd Debt-to-Equity ratio is -0.69, which is lower the industry average of 0.07, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aban Offshore Ltd?

Aban Offshore Ltd Debt to cash flow from operations is 182.63, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aban Offshore Ltd?

Q.1 Promoter shareholding and pledge status of Aban Offshore Ltd?

Promoters hold 46.00% of the Aban Offshore Ltd, with 19.37% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aban Offshore Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aban Offshore Ltd vs industry peers?

Aban Offshore Ltd revenue CAGR is -12.33%, compared to the industry median CAGR of 9.51%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	38.1	9.5
Gross Profit Growth (%)	0	16.9
Operating Profit Growth (%)	0	15.9
Net Profit Growth (%)	0	33.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.28	0.21
ROE (%)	-	8.66
ROCE (%)	-	9.36
Cash Conversion Cycle (days)	-1480.96	55

Valuation & price assessment

Q.1 Stock return of Aban Offshore Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -22.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-22.1%	-13.4%	-24.2%	-53%

Q.2 Valuation ratios of Aban Offshore Ltd vs historical?

The current P/E ratio of 5.19 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	5.19	-	22.52
Price to Book	-0.1	-0.31	1.33
Price to Sales	0.93	3.25	4.32
EV to EBITDA	10.23	-4.76	7.69

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Check Before You Invest : Aban Offshore Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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