Aban Offshore jumped 7.33% to Rs 386.40 at 13:53 IST on BSE, extending Monday's 20% surge triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.
Meanwhile, the BSE Sensex was down 93.95 points, or 0.46%, to 20,511.13.
On BSE, 15.07 lakh shares were traded in the counter compared with average volume of 2.28 lakh shares in the past one quarter.
The stock hit a high of Rs 391.30 and a low of Rs 365 so far during the day. The stock hit a 52-week high of Rs 407.35 on 7 January 2013. The stock hit a 52-week low of Rs 200.05 on 31 July 2013.
Shares of Aban Offshore surged 20% to Rs 360 on Monday, 25 November 2013. The stock has risen 28.80% in two sessions from 300 on Friday, 22 November 2013.
The stock had outperformed the market over the past one month till 25 November 2013, rising 58.28% compared with the Sensex's 0.38% fall. The scrip had also outperformed the market in past one quarter, gaining 61.25% as against Sensex's 11.26% rise.
The small-cap offshore drilling services provider has an equity capital of Rs 8.70 crore. Face value per share is Rs 2.
According to reports, Aban Offshore has revenue accruing from Iran. Around 40% of the company's business comes from Iran and around seven rigs of the company had been deployed in Iranian offshore sites.
On Sunday, 24 November 2013, Iran and world powers reached an initial agreement on the Islamic republic's nuclear program that will loosen economic sanctions while maintaining a cap on oil sales. The deal will suspend restrictions on shipping cover and will enable Indian oil companies to purchase contracted volumes of oil more easily.
Meanwhile, the Indian government is likely to kick-start the auction of the next round of oil and gas blocks under New Exploration Licensing Policy (NELP) in January 2014, which also augurs well for offshore oil services providers.
Aban Offshore's consolidated net profit rose 57.8% to Rs 77.68 crore on 5% growth in net sales to Rs 1001.59 crore in Q2 September 2013 over Q2 September 2012.
Aban Offshore is India's largest offshore drilling contractor in the private sector, offering drilling and oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad.
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