Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Shiv Vani Oil & Gas Exploration Services with a target of Rs 405 in the short term.

The report further stated that, if the counter is successful to breach Rs 380, then it will hit a target of Rs 405.

In addition, the firm has suggested a support level for the scrip at Rs 335.

Today (Sep 11), the shares of the company opened at Rs 366.90 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 21.39 & 16.83 respectively. The share price has seen a 52-week high of Rs 584 and a low of Rs 88.10 on BSE.

For the three month period ended June 2009, Shiv-Vani Oil and Gas Exploration recorded a substantial growth in its standalone net profit.

During the quarter, the company's profit surged 41.91% assisted by sharp increase in sales.

The company's net profit stood at Rs 301.06 million as compared to Rs 212.15 million during the same quarter of the last year.

The company's net sales during the period grew 66.14% to Rs 2,363.51 million, whereas total income climbed 66.43% to Rs 2,374.35 million.

Shiv-Vani Oil and Gas Exploration reported earnings of Rs 6.86 per share during the three month period, registering 42.03% growth over previous year period.

During the quarter, the company's operating margin increased by 148.06 basis points to 41.61% as against the previous year period. Interest cost surged 96.61% to Rs
338.45 million whereas depreciation cost ascended 2.46 times to Rs 195.08 million over previous year period.

The Shiv-Vani Group, which is a well-diversified public limited company listed with BSE and NSE, offers a complete group of onshore activities, offshore operations and natural gas compression & associated services - ranging from shot hole drilling and seismic appraising through to directional drilling, engineering and logistics.