Cairn India Ltd. - Results in-line, maintain Buy - Emkay

Reco: BUY
CMP: Rs 331
Target Price: Rs 401

- PAT marginally below our and street estimates at Rs33.8bn vs. our and consensus of Rs35bn. Revenue at Rs.46.4bn, up 14% QoQ, while EBIDTA grew by 19.6% QoQ to Rs34.8bn

- Average Rajasthan production at 175kbpd grew by 1% QoQ; current production at 178kbpd. FY14 guidance maintained at 200kbpd; capex guidance at $3bn over the next 3 years

- RJ average oil realization at $96.7/bbl, up 2.2% QoQ, wWhile net realisation at $95.3/boe, up 2.1% QoQ; Discount rate increased from 8% to 13% QoQ, higher than stated guidance

- Currently, the stock is trading at a P/E of 6.9x FY15 EPS and 0.9x P/bv;, maintain Buy, with a target price of Rs.401.

Source : Equity Bulls

Keywords