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Remain invested in Aban Offshore for long term
Shahina Mukadam Of IDBI Capital Market is of the view that short-term investors should book profits in Aban Offshore on the upside or remain invested for the very long term.
Shahina Mukadam Of IDBI Capital Market is of the view that short-term investors should book profits in Aban Offshore on the upside or remain invested for the very long term.
Mukadam told CNBC-TV18, "In Aban Offshore, if you see the current business, they are doing exceedingly well especially with rates moving up. The newer contracts that they enter into would be at higher rates. At the same time I must say that the valuations are extremely expensive at around 55 times FY07 earnings, its not cheap at all. I would look at higher levels to book profits for the shorter term. For the longer term if you are holding for three years there is no problem whatsoever. The company is on a major expansion mode; FY09 should show a tremendous growth in earnings. So, if I were in for the shorter term then I would book profits on the upside or then remain holding for the very long term."
