Nirmal Bang research has maintained buy rating on Asian Oilfield with target price of Rs 251, implying upside of 53% in its June 12, 2008 report. "We expect Asian Oil Field Services Ltd to report a CAGR of 65.0% during FY07 to FY10E in net sales on the back drop of strong order book position and significant expansion plans of the company. These coupled with unprecedented demand for seismic survey on the back of boom in oil & gas exploration sector, will drive growth for the company going forward. We expect AOSL to report net profit CAGR of 81.0% during FY07 to FY10E. It has an order book position of 3.72 times its annualized FY08E sales providing earnings visibility going forward. At CMP of Rs. 164.0 the stock is trading at 21.2X and 12.7 its FY08E and FY09E diluted earnings. At current levels the stock looks undervalued and holds strong potential for upside. Therefore based on our DCF valuation method we assign a buy rating on the stock with the target price of Rs. 251.3 implying an upside of 53.2% from current levels" according to Nirmal Bang report.
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