Invest in Cairn India: Agarwal

Rajesh Agarwal, Eastern Financiers is of the view that one can invest in Cairn India than GAIL.

Agarwal told CNBC-TV18, “On Fundamental basis, GAIL seems to be on a strong footing for a longer-term horizon considering the fact that government is trying to reduce subsidies and that would reduce subsidy burden on the company and with direct transfer of subsidies and cap on LPG cylinders, these things are going to be helpful in the longer-term. Third quarter numbers are likely to be muted at around 5 to 6 percent growth. So, we don’t feel that in the short-term sometime would happen in GAIL.
 
He further added, “I would suggest buying in Cairn India, because one, the numbers are very good. Two, they have recently got approval for hiking their capacity to three lakh barrels per day and that is going to be a big positive for Cairn in the coming days. I would suggest why not invest in Cairn rather than going for GAIL.”