Cairn India has target of Rs 326: Sanjay Vaid

Cairn India has medium term target of Rs 326, says Sanjay Vaid, SBI Cap.

Vaid told CNBC-TV18, "At the current valuation Cairn India is trading assuming that the Brent would be at a longer term average of USD 85 per barrel but we all know that Brent is trading much above USD 100 so obviously there is some decent upside left on that. On the capacity also we feel that there could be an upside in the sense that today the company is producing almost 240,000 barrels per day and we feel that it could easily be ramped up to close to 300,000 barrels per day."
He further added, "On reserves also, there could be positive upsides. The negative on Royalty and CESS payments and all that I think are to a large extent priced in. For the shorter term, I feel that there could be some resistance close to that 50 day moving average of Rs 297-298. So stock can head towards that in the shorter term. Our target for the medium term is Rs 326."