Cairn India Ltd. - On course to meet target - Emkay

Reco: BUY
CMP: Rs 307
Target Price: Rs 401

- Revenue at Rs.40.6bn in line with our estimate Rs.41.4bn, while PAT at Rs.31.2bn marginally higher than our estimates Rs.30bn due to higher forex gain of Rs.6.8bn

- Avg. Rajasthan prod. at 173kbps grew by 3% QoQ, while current prod. at 180kbpd. FY14 guidance maintained at 200-215kbpd; capex guidance at $3bn in next 3 yrs

- RJ avg. oil realization at $94.6/bbl, down 6% QoQ), While net realisation at $93.3/bbl, decline of 5.8% QoQ; Discount rate decline from 10.7% to 8% lower end of the stated guidance

- Currently, the stock is trading at a P/E of 6.2x FY15 EPS and 0.8x P/bv, maintain Buy with target price of Rs.401

Source : Equity Bulls

Keywords