Wednesday, October 12, 2016

How to pick Sectors Best stock - Taking benefit of Crude Oil price



Aban offshore
Mcap - 1479.56
Sales - 2833.85
Margin - 56.61%
PE - 28.86
Price to sales- 0.52

Mcap divide by sales divide by margin
0.922


Jindal drilling
Mcap 553.23
Sales 329.1
Margin - 10.48%
PE - 17.20
Price to sales- 1.68

Mcap divide by sales divide by margin
16.04


Selan exploration
Mcap 336.04
Sales 58.02
Margin 13.48%
PE 32.44
Price to sales 5.79


Mcap divide by sales divide by margin 42.96


Conclusion of analysis:-
Aban looks much undervalued even at this expensive PE

Low PE doesn't always indicates undervalued🎯



After considering debt levels, where Aban have high Debts,

Selan
29.67


Aban
9.93

Jindal
18.511


& this are the results. Still Aban is highly undervalued


After shortlisting Aban as a fundamental pick. On chart, it looks breakout with Volumes making new 52 week highs. After breakout, stocks mostly shows tendency to settle at previous resistance (Now support) which is @ around 235

Bottom line:-
Add Aban to your portfolio up to 235

2 comments:

  1. JT SIR,
    Aban is 200 now is it still a buy or you see any change now in company fundamental.

    ReplyDelete
    Replies
    1. Crude is up, crude related stocks up, so here I have described that method of selecting undervalued stocks in sector which I use, applicable to any sector of your choice

      Delete