Ratnesh Kumar, CEO, Institutional Equities, Anand Rathi Financial Services is underweight on oil & gas space.
Kumar told CNBC-TV18, "Oil and gas overall, I would still be fairly significantly underweight because what you have seen is that on the actual oil marketing side there are still heavy losses and refining margins have gotten a bit better but those losses are still going to weigh on the sector. So overall the sector would still be underweight."
He further added, "In Cairn specifically the news which has come through in our estimate it adds about Rs 19 a share to the fair value but still despite adding that in the stock is on the valuation basis quite expensive."
Cairn India has touched an intraday high of Rs 302.40 and an intraday low of Rs 296.10. At 10:11 hrs the share was quoting at Rs 296.50, down Rs 1.95, or 0.65% with volumes of 124,695 shares. Yesterday the share closed up 1.93% or Rs 5.65 at Rs 298.45.
The company touched its 52 week high Rs 310.00 and 52 week low Rs 184.95 on 11 Jan, 2010 and 31 Mar, 2009, respectively. Currently, it is trading -4.35% below its 52-week high and 60.31% above its 52-week low. Market capitalisation stands at Rs 56,236.20 crore.
