Cairn India - Risk reward favorable; Production concerns overdone - Emkay

- Recent correction in stock price provides a good entry point considering Cairn India's strong fundamentals (i.e. strong production growth visibility and higher FCF generation) and attractive valuations

- Current valuations do not factor any potential upside to Rajasthan block from prospective resources

- Deployment of cash offers further upsides to valuation

- Post recent correction, CIL is among the cheapest E&P players compared to international peers. At CMP, stock trades at 6.5x FY14E and 1x P/BV. Maintain Buy with a TP of Rs.397

Source : Equity Bulls

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