Hold on Cairn India - TP Rs.342 - Geojit BNP Paribas

Hold rating is maintained on Cairn India with unchanged target price of Rs.342.The stock is being traded very close to the target price and it seems that the near - term positives are already priced in the current price.

Company's reported PAT at Rs.2190 crore is marginally down by 3% qoq, mainly due to forex losses of Rs.210 crore.

Revenue increased 18% qoq on higher production owing to the startup of Bhagyam field in Jan 2012 and higher crude prices.

Long term operating expenses remained unchanged at USD5/ barrel.

Reserves upgrades have been announced, which shows marginal increase but lower than expectations. However, reserves upgrades hint to long term potential though the near term is priced in.

Key events for 2012 include approval for pipeline augmentation and polymer FDP submission. The focus now is on execution.

Source : Equity Bulls

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