Cairn India - In line with estimates, robust exploration to drive growth... - Ventura

Post receiving exploratory approvals, Cairn India is confident of achieving their FY14 exit run rate of 225-240 kbopd. Further, regulatory clearance from the Government of India to conduct exploration in development areas resulted in 26th discovery at Rajasthan block (RJ-ON-90/1). This milestone is likely to drive growth by realising the basin potential of 300,000 bopd. On this expansion line, we remain confident on Cairn's ability to ramp up volumes in Rajasthan field and expect Cairn's volumes to spurt in FY14.

At the CMP of Rs. 289 the stock is trading at 5.4x and 5.7x its estimated earnings for FY14E and FY15E and we recommend a BUY on the stock.

Source : Equity Bulls

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