Samant told CNBC-TV 18, "Shiv Vani Oil is the largest player in onshore rig supply rather than offshore. This company has increased its strength in the rig supply in last year from 29 to 40, already 35 rigs have been deployed and they are in consultation with ONGC and some Oman based company to deploy the balance five rigs. The other two businesses like CBM blocks as well as seismic surveys are doing extremely good; the orderbook is extremely good to the tune of Rs 3,700 crore, which stands at 3.5 times its revenues for FY09. The margins are extremely good, they are working at 58% of the operating margins and since the company is trading at 6.5 times to its PE for its expectations of FY07, we are putting up a target of Rs 434 which is almost 25% from current market levels."
Disclosure: We are not holding the above stock personally but we are recommending to our clients.
