Tuesday 11 November 2008

Buy Cairn India: LKP Shares

LKP Shares has recommended a buy rating on Cairn India in its November 6, 2008 research report. "The Group has posted a net profit of Rs 2,933.20 million for Q308 (Rs 232.40 million for Q307). Total Income also increased from Rs 3,001.10 million to Rs 5,261.70 million for the quarter ended September 30, 2008. The main factors for the high growth in revenues include higher oil price realization, weakening of rupee, and revenues from other income."

"We believe that the concerns on the oil prices have been overplayed on the stock. At current valuations, we still favour an investment in the stock with a longer-term horizon. The debt equity ratios remain almost nil, with growing return ratios as a result of commencement of production from Rajasthan. There is an enhanced earnings visibility for CIL, subject to scheduled production of oil & gas. Buy," says LKP Shares' research report.

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Source: Moneycontrol

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