Cairn India - Diwali Picks 2012 - Kotak

CMP - Rs.328, Current TP - Rs.365

- Cairn India Ltd (CIL) is one of the biggest private exploration and production companies in India.

- MBA have recoverable oil reserves and resources of more than 1 billion barrels, which includes proven plus probable (2P) gross reserves and resources of 636 million barrels of oil equivalent (Mn boe) with a further 308 Mn boe or more of enhanced oil recovery (EOR) potential. This is 25-30 years of production.

- Based on our estimates, the stock is trading at 5.1x EV/EBIDTA and 6.3x P/E on FY14E earnings.

Source : Equity Bulls

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