Shiv Vani - Lots of Gas Again!
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1274
Printed Date: 23/Apr/2025 at 6:01pm
Topic: Shiv Vani - Lots of Gas Again!
Posted By: smartcat
Subject: Shiv Vani - Lots of Gas Again!
Date Posted: 10/Oct/2007 at 4:29pm
http://www.moneycontrol.com/india/news/recommendations/buy-shiv-vani-oil,-target-rs-480:-sharekhan/306464 - Buy Shiv-Vani Oil, target Rs 480: Sharekhan
Financial Performance & Estimates:
Key financials CY2005 CY2006 CY2007E CY2008E CY2009E
Net sales (Rs cr) 221.0 276.8 385.3 891.7 1,139.8 Net profit (Rs cr) 21.2 37.1 55.7 144.3 191.2 No of shares (cr) 3.7 4.4 4.4 4.4 4.4 EPS (Rs) 5.7 8.4 12.7 32.8 43.5 % y-o-y change - 47.4 50.2 158.9 32.5 PER (x) 55.9 43.9 29.2 11.3 8.5 Price/BV (x) 6.3 7.4 5.8 3.8 2.6 EV/EBIDTA(x) 16.3 19.1 15.9 7.9 6.2 RoCE (%) 14.4 18.1 22.2 40.5 36.2 RoNW (%) 10.1 10.4 11.3 18.5 19.1 Source: Sharekhan.com Website URL: http://www.shiv-vani.com - http://www.shiv-vani.com
Annual Report: http://www.shiv-vani.com/annualreport2006.pdf - http://www.shiv-vani.com/annualreport2006.pdf
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Replies:
Posted By: kulman
Date Posted: 10/Oct/2007 at 4:35pm
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Interesting. First offshore.... now onshore....what next?
Please note there is a typo error in that report:
Though the company also incurs a large part of its cost (including the wage cost) in US Dollar which provides a natural hedge, it is further insulting itself from the exchange rate fluctuation risk by quoting in rupee terms in case of some of its contracts.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 10/Oct/2007 at 4:41pm
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wow. When you read a report, you really READ the report!
um yes, companies like Cairn Energy are concentrating on the Rajasthan area and would require onshore service providers like Shiv Vani. And when it comes to investing, it is best to go with the largest onshore player - which is Shiv Vani.
Also, Kokilaben's dho Anmol ratan Ram aur Lakhan are taking up too much of my portfolio space. So just did a little portfolio rejig to accomodate Shiv Vani.
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Posted By: kulman
Date Posted: 10/Oct/2007 at 5:02pm
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Kokilaben's dho Anmol ratan Ram aur Lakhan .......
-------------------------------------------------
 ha ha haBoth are on the way to create history of sorts in wealth creation. According to an official who did not wish to be named, brothers seem to have short-term target to achieve wealth of US$100B individually.
As regards their long-term targets the official was tightlipped maybe because of his counting limitations.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: shivkumar
Date Posted: 10/Oct/2007 at 5:17pm
| shouldn't shiv-vani be included in the TED list? if oil hunt is the newest gold rush in India, then shiv-vani which is providing the picks and shovels should be making good money! what are the pros and cons of this stock? profitability, order book positions, future prospects, etc |
Posted By: smartcat
Date Posted: 10/Oct/2007 at 5:32pm
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Regarding 'Cons', I don't like the name of the company that much - it is not 'cool' enough. Other concerns are mentioned in the Sharekhan article. CBM = Coal Bed Methane. RNRL is also interested in harnessing natural gas (methane) from coal beds. With more operators tapping this resource, there will obviously be more demand for their services.Shiv-Vani is a complete integrated solutions company - they just don't provide the rigs. They also offer surveying of the area, data analysis, actual drilling, well maintenance and even pipeline construction.
They also plan to expand their offshore drilling fleet by acquiring new rigs.
Sundaram BNP Paribas Tax Saver Fund has taken a tiny exposure to this stock. Sharekhan and ICICI Direct have come out with their research reports. I think it will take some time for this stock to appear on the radar of big investors though.
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Posted By: shivkumar
Date Posted: 10/Oct/2007 at 5:43pm
| name sounds like some radio channel offering religious songs and bhajans!! |
Posted By: kulman
Date Posted: 10/Oct/2007 at 5:53pm
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name sounds like some radio channel offering religious songs and bhajans!!
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ha ha ha!!Let's hope the company delivers as projected. Otherwise poor smartcat would be doing that.... ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 10/Oct/2007 at 5:59pm
 If they don't deliver on their guidance, the promoters might mysteriously go missing (and later found in one of the holes they dug in Rajasthan).
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Posted By: PKB2000
Date Posted: 11/Oct/2007 at 10:41pm
Let them go in the hole but not before the price reaches to at least ~700.  ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: smartcat
Date Posted: 11/Oct/2007 at 12:17pm
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Not sure where Shiv Vani will go to - but for a small cap company, it is trading at a pretty high P/E. Aban Offshore is still the best bet in Exploration & Production space. Actually, my holding in Shiv Vani is a personal portfolio specific move. I have a smallcap-o-phobia and I'm slowly trying to overcome this. When there is so much excitement in the large cap space, I guess this is the best time to get into midcaps and small caps.
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Posted By: PKB2000
Date Posted: 11/Oct/2007 at 12:30pm
Many small caps and mid caps are actually always traded with high PE.
That is I heard from others (you must be knowing much better than me). Whenever there is an inclination of Small and Mid caps amongst people then they again goes to higher side very quickly. It is possible to go almost 5 to 10% upwards by the small and MID. When they run they run madly. When they fall they fall madly. Almost 70% mid and small are running 30 to 40% lower than their 52 week high.
The argument behind next run of MID CAPS is the prayer for many brokerages and especially when our Mutual Funds are sitting on cash with 4 to 5 billion dollar then the best time for mid and small caps are yet to come and that may be near future. But my worry is that= will that be a consistent run or extremely volatile. Though I personally nowadays enjoy Volatilty!
Another thing that I wonder the amount of money what we are hearing is as cash holding by mutual funds may be actually lower and I am little confused how is it possible for a mutual fund to keep money in such extreme Bull market? Are many of them have been shifted towards Large cap to a proportionate hoding say 70:30 (large: mid). If you can show some light that would have been interesting. Or will the FII next target be the Small and MID? ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: smartcat
Date Posted: 12/Oct/2007 at 1:23pm
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I'm not afraid of investing in high PE midcaps/small caps. My concern is that they are relatively small companies with tiny profits. Sometimes, the net profit of such a company is equal to the annual salary of Mukesh Ambani. Any negative development in the business environment will wipe out the profits and redden the balance sheet. I don't like red colour that much - the colour only looks good on sporty cars.
Shiv Vani http://www.moneycontrol.com/india/stockpricequote/oil-drilling-and-exploration/shiv-vani-oilgas-exploration-services/12/52/SVO01 - (up 8%) is playing only rock music and heavy metal today!
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Posted By: PKB2000
Date Posted: 13/Oct/2007 at 1:58pm
The link shows it is up by 9.14%, why did not you wait till the end of the day! Weak People like me can sell yaar in the midst of the day! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: smartcat
Date Posted: 22/Nov/2007 at 3:39pm
http://www.moneycontrol.com/india/news/recommendations/buy-shiv-vani-oil;-target-of-rs-648:-indiainfoline/314123 - Buy Shiv Vani Oil; target of Rs 648: IndiaInfoline
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Posted By: deveshkayal
Date Posted: 22/Nov/2007 at 6:15pm
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India Infoline seems to be competing with Macquarie in terms of aggressive price targets !!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: smartcat
Date Posted: 22/Nov/2007 at 11:16pm
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It's quite a decent report, but doesn't add anything new to the old Sharekhan's report. Indiainfoline has given their 2010 projections though.
Valuation summary Rs mn CY05 CY06 FY08E FY09E FY10E Revenues 2,210 2,768 4,476 9,353 11,079 PAT 212 371 730 2,038 2,575 EPS (Rs) 6.6 11.6 13.3 46.3 58.5 P/E (x) 64.2 36.6 31.9 9.2 7.2 ROE (%) 11.3 16.8 19.1 40.0 33.6
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Posted By: smartcat
Date Posted: 16/Dec/2007 at 3:54pm
Excerpts from ICICIDirect.com report on Shiv Vani -
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Posted By: deveshkayal
Date Posted: 18/Dec/2007 at 9:16pm
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http://www.valueresearchonline.com/funds/portfoliovr.asp?schemecode=183 - Reliance Growth Fund has added Shiv Vani in Nov. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: smartcat
Date Posted: 19/Dec/2007 at 3:33pm
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http://www.moneycontrol.com/india/news/recommendations/buy-shiv-vani-oil;-target-of-rs-615:-sharekhan/318008 -
Buy Shiv Vani Oil; target of Rs 615: Sharekhan
MFs adding this stock + more broker coverage from Sharekhan, ICICIDirect and Nirmal Bang = good sign for the stock?
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Posted By: kulman
Date Posted: 19/Dec/2007 at 3:54pm
The following thought is an interesting one, isn't it?.....
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 19/Dec/2007 at 4:34pm
| Yessir! And it is probably best to view a report from 'Nirmal Bang - A Relationship Beyond Broking' suspiciously. That broker guy talking to my (imaginary) wife gives me the creeps. |
Posted By: smartcat
Date Posted: 28/Apr/2008 at 1:47am
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080428194502121&dir=2008/04/28&secID=livenews - Shiv Vani Oil Q4 net jumps 2.09 times; sales surge 2.18 times
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Posted By: smartcat
Date Posted: 07/Aug/2008 at 12:13pm
http://economictimes.indiatimes.com/Oil_boom_to_benefit_Indias_drilling_equipment_makers/articleshow/3332947.cms - Oil boom to benefit India's drilling equipment companies
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Posted By: gyansr
Date Posted: 08/Aug/2008 at 3:08pm
| Shiv-Vani Oil & Gas Exploration Services Limited has informed the Exchange regarding a press release titled "Shiv-Vani bags order of Rs. 1610 Crores from ONGC for 8 Rigs". with this order total order book of the company stands at 4500 crores to be executed over 3 years. Does it not look great for a company that did around 400 crores in sales last year(2007-2008) |
Posted By: deepinsight
Date Posted: 08/Aug/2008 at 7:01pm
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any views on the quality of the management? ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: smartcat
Date Posted: 18/Nov/2008 at 10:40am
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Shiv Vani stock price finally surrendered to the bear market after fighting bravely for 10 months. |
Posted By: kanagala
Date Posted: 18/Nov/2008 at 11:06am
Looks like, time is up for even last bulls standing like HDFC twins, Hero Honda, Sun pharma, HUL etc. ------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: stockaddict
Date Posted: 19/Nov/2008 at 3:03pm
| Shivvani held out in 500-600 range for long but falling continuously for last month or two. I would like to buy it below 150 for long term as prospects are attractive. |
Posted By: Mr. V
Date Posted: 19/Nov/2008 at 9:01pm
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It was holding up probably because Oil was still trading high. Now that Oil is down to $55, all exploration companies are witnessing a fall in share price. |
Posted By: Vivek Sukhani
Date Posted: 19/Nov/2008 at 10:16pm
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Well, if the orders are from national oil companies, there's no need to get jittery........
National Oil companies have to ensure energy security, first before looking at profitability. So, I dont think they will stop their hunt very significantly. ------------- Jai Guru!!! |
Posted By: Mohan
Date Posted: 19/Nov/2008 at 12:05pm
Might even see it below 150 the way its going. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: India_Bull
Date Posted: 19/Nov/2008 at 12:35pm
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That would be right time to buy Shiv Vani.. Remember oil cant remain at 55 levels for long, it has to stabilize around 50-100 someday !! (See how desperate are the OPEC guys to control the oil prices , I mean to protect from going further down) these guys didn't move a inch when oil was near 150 !!
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: smartcat
Date Posted: 19/Nov/2008 at 9:09am
Arre Yaar Shubh Shubh Bolo!
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Posted By: master
Date Posted: 04/Dec/2008 at 11:40pm
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Sharekhan maintains buy
Shiv-Vani Oil and Gas Exploration Services’ (Shiv-Vani) strong order book of about Rs4,700 crore (8.2x its FY08 revenues) provides strong visibility to its revenues for the next three years. Furthermore, capex of the company has been backed by the orders already in hand. Shiv-Vani continues to bid for new orders and with a success rate of about 60% the company might see an improvement in its order book going forward. However, the falling crude prices act as a discouraging factor for the exploration activities and this might lead to a slowdown in the exploration sector in the future.
Though the company’s stock has been hammered in recent times, we continue to believe that the company’s fundamentals remain intact. However, the high institutional holding, particularly the high foreign holding, remains an overhang on the stock, which has been a victim of the overall collateral damage. At the current market price of Rs128, the stock discounts at 3.1x its FY10E earnings and is quoting at an enterprise value/earnings before interest, depreciation, tax and amortisation of 3.4x, which is way below its historical one-year forward valuation.
With its integrated business model and as the country’s largest onshore oilfield service provider, Shiv-Vani deserves a premium valuation over some of its global peers, which mainly concentrate on one business segment. We maintain our BUY recommendation with a revised price target of Rs420 (10x FY10E earnings).
------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: kulman
Date Posted: 04/Dec/2008 at 7:02am
A general observation: The high institutional holding especially foreign was considered good just a year ago. For the times they're a changing! Strong hands then, are weak hands now. (apologies to Bob Dylan) ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 04/Dec/2008 at 9:32am
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HDFC Bank has a more then 70% foreign holding and still is a relative outperformer amongst its peer group and with the sensex. Even the foreigners know how to read companies so if earnings are there they will not dump it left right and center.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: stockaddict
Date Posted: 04/Dec/2008 at 9:44am
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From the same sharekhan report some key points are:
1) Shiv vani is the largest full service provider to oil exploration sector.
2) Order book is Rs 4700 crores which is 8.2 x current revenues.
3) Bulk of orders are from ONGC, OIL therefore, as Vivek pointed out, energy security is more important issue than oil prices.In any case oil prices may revert back to mean after economy starts to improve.
4) most of the capex is done already, no FCCB issue.
Shivvani is now available at 125 so risk reward is not so much against the investor vs yearly high of 700+
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Posted By: India_Bull
Date Posted: 04/Dec/2008 at 11:15am
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Shivvani is now available at 125 so risk reward is not so much against the investor vs yearly high of 700+
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Yearly high of 700 is the past thing. The truth is one has to start with 125...
 ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: stockaddict
Date Posted: 05/Dec/2008 at 1:08pm
Please read my complete post, i have never said 'only because it has fallen from 700 to 125 it is a buy'. (I have started buying from 139 only)
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Posted By: India_Bull
Date Posted: 05/Dec/2008 at 1:33pm
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Ok Sir, Thanks for bringing it to my notice. ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Hitesh Shah
Date Posted: 08/May/2009 at 10:54pm
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From Geojit Ø
Shiv Vani Oil & Gas Exploration is
recommended to buy with a one year target price of Rs.283. The company has
strong economic fundamentals and the scrip is highly undervalued. Ø
The company has recorded strong order
growth in FY09 and orders in hand is USD 870
million. Ø
EPS is expected to grow at 35% annually in
FY10 and FY11. Ø
The company executes orders mainly from
ONGC and this dependence is highly advantageous to the company because has
strong capex plans. (Something is missing here Ø
The stock had earlier been recommended at
a target price of Rs.522 but the target price is currently reduced to Rs.283
despite strong growth potential. Ø
Reduction in target price is only because
of the illiquid nature of the stock. Ø
Revised target price of Rs.283 is at a P/E
of just 6 times of FY10 expected earnings while the P/E of its peers is
nearly 9 times of expected earnings. Ø Even at this conservative estimate, the stock is expected to bring attractive returns from the current level.
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Posted By: chimak10
Date Posted: 08/May/2009 at 11:03pm
| missing thing is ONGC |
Posted By: excel_monkey
Date Posted: 15/Nov/2010 at 3:18am
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smartcat
the stock has now graduated to be a mid cap as well quoting at attractive valuation 2012 EV/EBITDA of 5.6 pl find sharekhan's report http://www.myiris.com/shares/research/sharekhan/SHIUNIVE_20100928.pdf
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Posted By: excel_monkey
Date Posted: 24/Dec/2010 at 3:29am
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I think this one is a good medium term trade
according to Sharekhan the next two quarters are going to be good Sorry I am not rich, so I reserve the right to behave like a Mungerilal 
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Posted By: excel_monkey
Date Posted: 15/Apr/2012 at 4:12pm
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Smartcat jee are you following this one?
It has really become dirt cheap at 4.5 times fy2013 ev/ebitda Or it has become dirt cheat because it has become dirt? ------------- I have a vested interest in the stocks I discuss, therefore I would request you to kindly consider my comments with a pinch of salt and do your own due diligence |