Shares in Cairn India gain 2.2 percent after Kotak Institutional Equities upgraded the stock to "buy" from "add" and kept its target price of 340 rupees, saying the current price provides a good entry point as valuations and expectations have turned reasonable.
Shares in Cairn India
"We find the risk-reward balance favourable now as the stock does not factor in potential upsides from Barmer Hill formation, 19 other discoveries and prospective exploration in Rajasthan block," Kotak says in a report.
The investment bank adds that the stock has been penalized enough for missing its "aggressive" guidance.
Cairn India shares have fallen 14.6 percent in 2013, as of Thursday's close.
Cairn India stock price
On August 22, 2014, Cairn India closed at Rs 330.60, up Rs 4.50, or 1.38 percent. The 52-week high of the share was Rs 385.00 and the 52-week low was Rs 304.25.
The company's trailing 12-month (TTM) EPS was at Rs 32.59 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 10.14. The latest book value of the company is Rs 206.72 per share. At current value, the price-to-book value of the company is 1.60.
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