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Accumulate Cairn India; target of Rs 367: Angel Broking
Angel Broking is bullish on Cairn India and has recommended accumulate rating on the stock with a target of Rs 367 in its January 31, 2012 research report.
Angel Broking is bullish on Cairn India and has recommended accumulate rating on the stock with a target of Rs 367 in its January 31, 2012 research report.
"Cairn India's (CIL) 3QFY2012 net sales remained flat yoy despite increased crude realization due to higher profit petroleum and royalty payment. The company's adjusted PAT decreased by 2.5% yoy."
"CIL's top line remained flat yoy and stood at Rs3,097cr despite crude oil realization increasing by 33.0% yoy due to higher profit petroleum and royalty payment. CIL's OPM contracted by 169bp yoy to 82.2%, resulting in a 2.0% yoy decline in operating profit to Rs2,546cr, while adjusted net profit declined by 2.5% yoy to Rs1,960cr during the quarter. Management maintained its guidance to reach exit capacity of 175kbpod by 4QFY2012-end. The company also aims to reach an exit capacity of 240kbopd by CY2013-end."
"CIL has the infrastructure in place to ramp up production to meet its targets; however, currently it is awaiting approvals from the government. We expect production to gradually increase in the coming quarters to reach a capacity of 175kbopd by FY2013 and 225kbopd by FY2014. Further, there are various exploratory untapped upsides in Barmer Hills and other fields waiting to be developed. Hence, we recommend Accumulate on the stock with a target price of Rs367," says Angel Broking research report.
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