Deleveraging balance sheet to be positive for Aban Offshore: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management shares his views on Aban Offshore.

ET Now: What did you make of the numbers and announcement of Aban Offshore?

Prakash Diwan: If I were to extend or extrapolate these numbers to another two quarters, the stock is a steal. The only question is how sustainable are these numbers and that needs a little bit of clarity.

They have done this through some very significant moves in terms of operationally making themselves efficient enough. The deleveraging on the balance sheet, which in any case was coming and visible enough, is definitely going to be a very positive move.

One parameter is at what rate will they raise equity and the second is what is the order book looking like in terms of translation into the next two quarters. These are the only other indicators that could take the stock forward another 40-50% easily.