Add Cairn India - Target Price Rs.360 - Kotak

Weaker-than-expected results; production roadmap is key. Cairn India reported lower net income at Rs.23.2 bn (-39% qoq) versus our estimate of Rs.26.2 bn led by higher foreign exchange fluctuation loss of Rs.7.9 bn versus our expected Rs.3.7 bn.

We maintain our ADD rating and DCF-based target price of Rs.360 but see downside risks from (1) potential delays in ramp-up of oil production and (2) lower-than-assumed recoverable reserves from Rajasthan block.

Source : Equity Bulls

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