Stock analyst Hitendra Vasudeo of stockmechanics.com is of the view that traders can buy Aban Offshore with a short term target that lies between Rs 1297-1429.

According to Mr. Vasudeo, investors can buy the stock between Rs 1221-1165 with a stop loss of Rs 1144.

Shares of the company, on Friday (June 05), closed at Rs 1240.95 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 67.61 & 18.24 respectively.

The share price has seen a 52-week high of Rs 3843 and a low of Rs 224.10 on BSE. 

Aban Offshore remained top gainer during the last week. The stock gained more than 37% during the week. 

There were reports saying that the company has demanded bankers to moderate or change its vast debt repayment schedule and terms.

With the crash in crude rates, Chennai-based rig operator Aban Offshore has decided to shift Corporate Debt Restructuring (CDR) Cell for waivers and write-offs. 

The company has been seeking to re-negotiate its long term as well as short term arrears with lenders as cash flows have been severely affected owing to slump in oil prices. 

"The total borrowings are around Rs 14,000 crore and current liabilities are around Rs 900 crore. With nearly four to five rigs not in action and the fate of contracts of a few more in question, cash flows are clearly under strain. Therefore, a decision to move the CDR cell of the RBI has been taken," sources said. 

C P Gopalakrishnan, deputy MD of Aban Offshore said: "We are a media shy organisation and I do not wish to either confirm or deny anything."