Buy Cairn India: Rajesh Agarwal

Written By Unknown on Selasa, 23 April 2013 | 20.07

Rajesh Agarwal, Head of Research at Eastern Financiers recommends buying Cairn India . He feels that the stock will go upto Rs 350 in one year.

Agarwal told CNBC-TV18, "I would suggest a buy on Cairn India. We have a long-term target of Rs 350 with a time horizon of one year because this company is a pure play on crude oil. Current production is around 1,75,000 barrels per day, the company has already got approval for three lakh barrels per day."

"The company has a strong balance sheet, strong cash balance and strong investments. The best part is that it is trading at a P/E of less than 5. So if one wants to play in crude, in energy sector with the lowest P/E stock, Cairn can be a very good play. Yes it has not participated in this rally, but we feel that if one holds for a longer period of time may be one year down the line it can be a good stock to be in your portfolio. One can have a target of Rs 350, Agarwal added.



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