Hold Cairn India, says Mayuresh Joshi

Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "The Q1 numbers which Cairn India has posted shows the topline came around 8.5 percent down somewhere close to that Rs 4,062 crore mark. The barrels of production was almost at around 2,12,000 units. There was a forex gain of almost Rs 682 crore but on an adjusted basis if one leaves that aside, net profits fell by around 17.5 percent close to Rs 2,445 mark."

"Cairn India is spending around USD 3 billion on capex to drill around 450 additional wells. It is planning to up its production in the Bhagyam field by almost double the quantum," he added. "From 20 kbpd basis it is almost going to do around 40-45 in the next six to nine months or over the next 12 months. So, in that sense itself the capex plans are on track, decent balance sheet, cash on books though the profit sharing with the government is little bit higher with the gas production increasing and with the increase in crude production that augurs well for the stock. So, in that sense itself one should hold on to the stock. Keep a view of around couple of years, the stock should yield returns. We have a positive call on the stock and our target price itself is around Rs 356 over a year's period."