Aban Offshore Ltd

Aban offshore Limited, incorporated in 1986, is an Indo-US joint venture that is in the business of providing and operating ships, vessels, rigs, structures, equipment and personnel required for on-shore and off-shore drilling and oil field services. It is India's largest offshore drilling entity in the private sector. India offshore Inc. its American partner provide both technical know-how and equity participation. It owns offshore oil rigs and also operates ONGC's rigs on a contract basis and provide drilling services. Aban Offshore also owns the only FPSO in the country. Six facilities are located on Mumbai High, while there is one each on the Persian Gulf and Indian east coast.Key Risk : The major risk for Aban Offshore at the moment is that its have debt of around Rs.16,000 crore and some portion of debt due to mature this year and the next. In 2006 when crude oil price starting to move up and outlook of commodity sector looking very bright, Aban acquired Norwegian drilling company Sinvest-ASA at an enterprise valuation of $ 2.2 billion, largely with debt.Financials : Aban Offshore net profit jumped four-fold to Rs 256 crore in Dec 2008 qtr. but failed to prevent its market capitalisation plunge 57.2% since the start of 2009 to Rs 1194 cr.The reason for the particularly poor performances on bourses is the negative perception in the market about the outlook for this sector with crude oil price falling.Conclusion : From the 52 week high of 4290.90 Aban offshore plunge 95% to 232, therefore it is already discount all the negative perception in the market about its future outlook and now it is risk free investment for medium to long term investor. Last few days if market rumored to believe then some insider are buying at lower level and anytime its blast 20-30 percent from current level. For short term swing trader keep a eye on 210 and 200 level if this two level hold for few days then every possibilty that its move sharply from current level toward its first target of 322.

Hindustan Dorr-Oliver Ltd

Hindustan Dorr Oliver (HDO) is one of the few small-cap engineering companies that managed to weather the current slowdown by focussing on diversification of services and offering specialised technologies through overseas tie-ups. The company’s recent order-win from Uranium Corporation of India for a greenfield ore mining and processing facility demonstrates its ability to quickly capitalise on new business opportunities. At Rs 31.8, this listed subsidiary of IVRCL Infrastructures & Projects holds strong earnings potential from a medium-term perspective. Investors can consider investing in this stock, which trades at a modest 2.8 times its expected per share earnings for FY10.
HDO’s expertise lies in providing turnkey solutions and Engineering Procurement and Construction (EPC) services in liquid solid separation applications in industries such as mineral processing, fertiliser and chemical and environmental management. The diversified operation has aided in steady order flows even in a downturn such as the present one. The company has managed a 63 per cent growth in net profits for the nine months ended FY09 compared to year-ago numbers. The profit growth would have been higher but for the steep hike in interest costs primarily on account of working capital requirements.