Cairn India - Raring to go - Kotak

Cairn India's FY2013 annual report reiterates management's confidence on increasing crude oil production from the Rajasthan block by end-FY2014. Recent weakening of Rupee provides a margin of safety against potential decline in crude oil prices.

We retain our BUY rating on Cairn India stock with a TP of Rs. 350 noting catalysts from (1) ramp-up in production and (2) improvement in visibility on reserves from potential exploration successes. Ineffective utilization of cash is a key risk.

Source : Equity Bulls

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