Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Monday, July 28, 2008

Selan exploration technology:Oil is gold

Scripscan:Selan Explorations Technology Ltd
CMP:240
Target 340
Return percentage:40%
Traded in:Nse-bse

Industry Structure and Developments:The Government has awarded and signed a number of Production Sharing Contracts with Private Sector Oil Companies for Exploration Blocks under New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) Projects.Private Companies and Joint Ventures have contributed significantly in exploitation of existing oil reserves in the country with the striking of huge reserves of oil and gas within the Country. As a result, the domestic crude oil production is continuously improving with significant contributions of crude production from private operators,thus reducing foreign exchange outflow on crude imports.Oil sector today is one of the most prospective sectors where newer growth avenues for business and employment are opening up. India currently produces about 32.19 million tonnes of crude oil annually as against the requirement of 130.11 million tonnes.The balance is imported, making crude oil India's single largest item of import.All these factors make "Selan Exploration" a scrip to be a part of very investors core portfolio.

Why i like it:Selan exploration is set to produce around 130,000 bareels of crude oil from the onshore operating fields of Bakrol,Indrora and Lohar in the current fiscal compared to around 100,000 barrels produced in entire FY07.Further in FY09,Selan is expected to produce over 150,000 barrels of crude oil.Now things entirely changes for the company starting fiscal 09,As against an average price realisation of $ 71 per barrel in FY08, the realisations in FY09 would exceed $ 110-112 per barrel putting FY09 Revenues of Rs 68-70 crores with profits expected to exceed Rs 25crores.

Conclusion:The company recently signed agreements with Indian Oil Corporation to uplift the existing and additional production at the international rates for Crude Oil. The IOC and the State of Gujarat have also agreed to refund the levies on account of Sales Tax and surcharge on Sales Tax.The promoters are raising 30crs alloting themselves 18 lakh shares of Rs 165 each.Promoters in the past have hiked their stake in the company a number of times.Everytimes they does so the company performs bigtime.Selan is expected to clock an EPS of rs 15 in 09.At present prices the valuations looks quite attractive considering the prospects of the oil exploration industry.Seeing the trend of crude ,selan may just avail an increase in per barrel realisations.In case that happens expect the company to post better profits thereby giving more chances of higher capital appreciation.Watch out for the company folks may just become the "Show Stealer".


Regards,
ARUN
I can be reached at:-arunanalyst@rediffmail.com

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner