Maintain 'buy' on Cairn India - TP Rs.364 - Geojit BNP Paribas Financial Services

- Post the recent correction in Cairn's counter, it seems that the downside risk is limited from the current level, post factoring in the production delays. Reiterate buy with a target price of Rs.364.

- The valuation does not factor in any potential value from fields outside the core development area in Rajasthan.

- It seems that the market pessimism with regard to the delay in Bhagyam is exaggerated when seen from the valuation perspective.

- The company is now focused on improving its production from MBA and awaiting approvals for further explorations in Rajasthan.

- The recent crude price rally is yet to be reflected on the stock price. Downside risk for the stock is limited as crude price rallies.

Source : Equity Bulls

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