Recommendations For Cairn India Ltd
Cairn India Ltd (Bombay Stock Exchange)
Sector: Energy · Industry: Oil & Gas Exploration & Production ·
As of 4 Sep 2008
236.95INR Price Change
+3.20 Percent Change
+1.37% Analyst Recommendations

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Consensus Recommendations

Consensus Recommendation Next Earnings (approx.) Company Fiscal Year
End Month Last Updated
Outperform December 5 Sep 2008

Analyst Recommendations and Revisions
1-5 Linear Scale Current 1 Month
Ago 2 Month
Ago 3 Months
Ago
(1) BUY 11 10 11 10
(2) OUTPERFORM 5 5 6 6
(3) HOLD 2 3 2 3
(4) UNDERPERFORM 1 1 0 1
(5) SELL 2 2 3 1
No Opinion 1 2 2 2

Mean Rating 1.95 2.05 2.00 1.90
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avoid reliance petroleum...buy cairn india...

cairn india target 1500+@2010.

buy now.......

Shares of the company, on monday (Sep 01), closed at Rs 248.05 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 706439. The share price has seen a 52-week high of Rs 342.50 and a low of Rs 136 on BSE.

The stock has great potential to rise as it showed good improvement in last few trading sessions. It will achieve the target price as the company has healthy growth plans and well-built operating capabilities.

The company’s (Cairn India) Rajasthan fields will create 16% extra oil at 175,000 barrels per day and will contribute over 1/5 of the country’s current domestic oil output, when it starts production during the second half of next year (2009).

The company has submitted a revised growth scheme for Mangala oil field, biggest in the Rajasthan block and has received investment authorization for the second largest field known as ‘Bhagyam.’

Moreover, the company’s remuneration committee, at its meeting held on Jul. 29, 2008, sanctioned the grant of 4,563,423 stock options to the eligible company’s staff.

The committee granted 3,773,856 options under Cairn India Employee Stock Option Plan (CIESOP) 2006 and 789,567 options under Cairn India Performance Option Plan (CIPOP) 2006.

On consolidated basis, the company, for the quarter ended June 30, registered a profit of Rs 1,385.80 million as against the net loss of Rs 714.40 million for the quarter ended June 30, 2007.

The company’s total income surged 65.72% to Rs 4,614.30 million for the quarter.

On the standalone basis, Cairn India’s quarterly loss widened to Rs 466.80 million, as against Rs 75.69 million during the corresponding period of the last year.

The company registered net loss of Rs 0.25 per share during the quarter. Net sales zoomed 2.69 times to Rs 9.70 million, whereas total income for the quarter climbed 2.55 times to Rs 225.80 million, when compared with the prior year period.
...

According to Sam Mahtani, manager of the F&C Indian Investment Company, India is facing a ‘seismic shift' in its energy position providing abundant opportunities for investors.

"India's need for energy is insatiable and is driven by its rapid expansion combined with the fact that most oil and gas (75%) has to be imported", he commented. "Estimates suggest this will cost $84bn in 2009".

However, Mahtani also points to the success of Cairn India and Reliance Industries in finding oil and gas deposits in India.

In addition, both companies still have extensive and promising acreage that remains unexplored. Mahtani has significant positions in both Cairn India and Reliance Industries in his fund.

Over the next two years a generational shift in India's macro economic backdrop is expected as the energy discoveries of both Cairn and Reliance come on stream. Over this period both companies are set to increase output by 0.7 million barrels of oil and oil equivalent each day. This will account for approximately 0.5% of global oil production. It is also estimated that this will replace up to 36% percent of imports, the equivalent of $38bn.

"The new supplies of gas will enable a number of manufacturing plants and power stations to operate at optimal capacity thereby aiding India's economic expansion", he continued.

India currently has amongst the most heavily subsidised oil price in the world with the costs borne by the Government and producers and suppliers. So what does the future hold for energy demand in India?

Mahtani concluded: "In my view, the sub-continent is only going to go one way which should be good news for Cairn India and Reliance Industries, which have good records of oil discovery. Overall India has 26 sedimentary basins covering 3.14m sq km, which could contain oil and so far only 20% have been properly explored. This potential is boosted by the fact that in terms of new oil exploration India displays relatively low operational and exploratory risk for countries with deep-sea reserves"...

According to Sam Mahtani, manager of the F&C Indian Investment Company, India is facing a ‘seismic shift\\` in its energy position providing abundant opportunities for investors.

\\\\...

Cairn India “on track” to deliver crude oil from Rajasthan.

Cairn India, a subsidiary of the UK-based Cairn Energy, may produce up to 71 per cent more oil from the Rajasthan field and is close to securing the credit lines that will ensure sufficient funding is in place to start production next year.

The Rajasthan field is the largest oil find in the country after Oil and Natural Gas Corporation’s (ONGC) Bombay High discovery in 1974. ONGC holds 30 per cent in the block.
Chief Executive Sir Bill Gammell said the company “is on track to deliver crude oil from Rajasthan in the second half of 2009.”

This is despite his acknowledgment that “recent developments in the financial markets may impact the group’s ability to raise the necessary credit facilities to complete work programmes,” The Telegraph reported.

Cairn expects to foot 1.82billion dollar of the 2.6billion dollar bill for developing the field and building a pipeline, with the remainder coming from its partner, India’s state oil company ONGC.

Cairn will meet the cost through cash on its balance sheet, which stood at 1.18 billion dollar at the half year, and debt. Last week, Cairn signed a commitment with its five lending banks to increase its 840million dollar facility to 1.4 billion dollar.

The Rajasthan field, which has the potential to provide India with a fifth of its oil production, is thought to contain at least a billion barrels and to be able to produce 175,000 barrels a day at its peak. Assuming an oil price of 100 dollar, it will generate cash of about 3 billion dollar a year. (ANI)

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Cairn India, a subsidiary of the UK-based Cairn Energy, is all set to start production of crude oil at its massive Rajasthan field next year and is close to securing necessary credit lines, company sources said.

Cairn may produce up to 71 per cent more oil from the Rajasthan field, in which the Oil and Natural Gas Corporation (ONGC) of India holds 30 per cent stake, the sources said.

The Rajasthan field is the largest oil find in the country after ONGC's Bombay High discovery in 1974. Cairn said it plans to start production from three blocks in the Rajasthan field from the second half of 2009.

ONGC and Cairn have asked the government to benchmark the price to a variety of Indonesian crude oil. The Indonesian crudes are trading at a discount of 5-13 per cent to North Sea Brent crude.

With Brent currently trading at $115 a barrel, the Rajasthan crude may fetch a price of between $100 and $110 per barrel, the source pointed out.

Cairn is close to securing credit lines that will ensure sufficient funding to start production, chief executive Sir Bill Gammell said while announcing the company's half-yearly results.

Cairn expects a total expenditure of $2.6 billion for developing a pipeline to transport crude from the field, of which its share will be around $1.82 billion and the remainder coming from partner ONGC.

Cairn plans to meet the cost through cash on its balance sheet of around $1.18 billion and the rest from a consortium of banks which may be asked to lend up to $1.4 billion.

The Rajasthan field is estimated to hold at least a billion barrels of oil and at 175,000 barrels a day peak production could generate revenues of about $3 billion a year.
Cairn Energy, meanwhile, is planning to use the income to explore the sea off Greenland, where it has been granted licences for six vast exploration blocks.

The group reported a fall in interim profits before tax from $1.53 billion to $407 million, though it has been impacted by the Cairn India flotation last year. It is also skipping dividend.

Operating profits rose to $44.2 million from an $18.2 million loss, benefiting from a doubling in the average price of oil booked from $34.10 a barrel to $71.19.

...

Hi, Hurry up all. Buy Cairn. Today\\`s target Rs. 265/ +. By todays\\`s afternoon see this target without fail. Good Luck....

According to Sam Mahtani, manager of the F&C Indian Investment Company, India is facing a ‘seismic shift' in its energy position providing abundant opportunities for investors. "India's need for energy is insatiable and is driven by its rapid expansion combined with the fact that most oil and gas (75%) has to be imported", he commented. "Estimates suggest this will cost $84bn in 2009". However, Mahtani also points to the success of Cairn India and Reliance Industries in finding oil and gas deposits in India. In addition, both companies still have extensive and promising acreage that remains unexplored. Mahtani has significant positions in both Cairn India and Reliance Industries in his fund. Over the next two years a generational shift in India's macro economic backdrop is expected as the energy discoveries of both Cairn and Reliance come on stream. Over this period both companies are set to increase output by 0.7 million barrels of oil and oil equivalent each day. This will account for approximately 0.5% of global oil production. It is also estimated that this will replace up to 36% percent of imports, the equivalent of $38bn. "The new supplies of gas will enable a number of manufacturing plants and power stations to operate at optimal capacity thereby aiding India's economic expansion", he continued. India currently has amongst the most heavily subsidised oil price in the world with the costs borne by the Government and producers and suppliers. So what does the future hold for energy demand in India? Mahtani concluded: "In my view, the sub-continent is only going to go one way which should be good news for Cairn India and Reliance Industries, which have good records of oil discovery. Overall India has 26 sedimentary basins covering 3.14m sq km, which could contain oil and so far only 20% have been properly explored. This potential is boosted by the fact that in terms of new oil exploration India displays relatively low operational and exploratory risk for countries with deep-sea reserves"...

Harikrishnan, If Govt sells at Indonesian price then they would be selling at discount and due to waxy nature. Hence the Govt would take a stand not to charge CESS/Windfall tax which would benefit the company. ...

Hello, Harikrishnan. I fully agree with your long term view. I only have doubts on this Windfall tax issue which might crop up again. So, my question to you is whether Cairn's Rajasthan oil fields are pre-NELP or what ? ...

Harikrishnan, thanks for the information. But pls don't write in capital letters as your messg is getting deleted. We can't open ur earlier message of Bullish - will reach 1000+ as its capital. thanks and keep posting...

You are 100%rite Mr.Harikrishnan. cairn india will surelly cross 1000+ with in 1.5 years. strong company.strong technology. buy cairn india....

You are 100% rite Mr.Harikrishnan. cairn india very good stock.It will surely cross 1000+with in 1.5 years.. 175000 bbl oil capacity... strong output.strong company.stay invested in Cairn india....