Cairn India - Everything going well - Kotak

We expect tailwinds of rising crude prices and a weak Rupee to work favorably for the Cairn India stock in the near term. Gradual ramp-up in crude oil production and potential exploration successes in the Rajasthan block could further aid the stock performance over the next 12 months. Finally, a potential acquisition of the Government's stake in HZ by Sesa Sterlite may partly address cash-flow issues of the group. We revise our 12-month DCF-based target price to Rs. 370 (from Rs. 350).

Source : Equity Bulls

Keywords