Cairn India - cut volume, earnings estimates; maintain Reduce - BRICS Research

Cairn India (CMP Rs324, REDUCE)

Cut volume, earnings estimates

- Sri Lanka block appraisal to continue till CY14; expect preliminary resource estimate in CY12

- Lower Rajasthan FY12E volume by 16% to 133 kbpd; expect FY12 exit rate of 175kbpd

- Increase FY12, FY13 earnings estimates by 9% , 7% on weaker rupee, higher FY12 expected oil price

- DCF-based target price up 5% to Rs278/share.

- Maintain Reduce as stock discounts US$89/bbl, which is higher than our long-term oil price of US$75/bbl.

Source : Equity Bulls

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