Hold on Cairn India – TP Rs.327 - Geojit BNP Paribas Financial Services Limited

During 3QFY12, the company has beaten market estimates due to better than expected price realization, higher other income on forex gains and lower taxes.

Mangala price realization at USD100.3 / barrel.

Exploration cost was high at Rs.180 crore due to Sri Lankan dry well write –off.

Reasonable dividend payout is possible from the company but the time of announcement is uncertain as dividend announcement will depend on approval from the Directorate General of Hydrocarbons (DGH) and the Ministry of Petroleum and Natural Gas.

The company currently produces 1.25 lac barrels per day at Rajasthan.

It seems that the recent rally in stock price would attract profit taking and thetarget price is maintained at Rs.327.

Source : Equity Bulls

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