Buy Cairn India
Cairn India
CMP: Rs 193
Target Price: Rs 245-247
Merrill Lynch has recommended a ‘buy’ on Cairn India (CIL), post-release of the operational update of CIL’s assets. “The operational update read together with earlier guidance suggests 17-27% upgrade in plateau production rate and a commensurate rise in reserves in its main Rajasthan block. Development cost is also likely to rise and production delayed. CIL’s base case fair value (Rs 232 share earlier), which is now also its price objective (earlier Rs 245 share), is upgraded to Rs 247 a share,” says the brokerage.
It adds that as per the operational update, plateau production from the three main fields at Rajasthan could be 175k bpd. This could mean plateau production of 180-190k bpd, including output from two other fields. This could mean 20-27% upside to plateau production vis-à-vis earlier estimate of 150k bpd
In my opinion Cairn India is a BUY and a stock to accumulate as it has Great fundamentals and nice business… If RPL can be valuated soo much then why not Cairn as it also has a very sound management with lot of dynamic experienced personalities… It may go to 400 within a year.. Just my opinion