Cairn India - Restructuring facilitates dividend - Emkay

Results were broadly in line with our and street est. with Adjusted PAT at Rs.31.1bn. However forex loss of Rs.7.8bn dragged down reported PAT to Rs.23.2bn

- Revenue and EBIDTA remains flat sequentially at Rs.44.4bn and Rs.34bn respectively due to higher discount to Brent at 10.8% (7.3% QoQ), despite improvement in prod. by 1.7%

- Cairn India has received all approvals for corporate reorganization from GoI. Board is meeting on 31st Oct2012 to consider interim dividend which has been long awaited

- Currently, the stock is trading at a P/E of 7.2x FY14 EPS and 4.0x EV/EBITDA, maintain Buy with target price of Rs.385

Source : Equity Bulls

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