Business Standard

Cairn India up 3% on UBS upgrade, oil price rise

Related News

Shares of oil explorer rose 3.8% to Rs 353.90, tracking gains in crude oil prices and after UBS upgraded the stock to "buy" from "neutral" and raised its to Rs 400 from Rs 375.

UBS said Cairn was a good proxy to play the rising crude prices and the weakening rupee, while saying it expected a "healthy" dividend from the unit of UK-based explorer Cairn Energy sometime in the next three months.

Cairn was also "likely" to announce "positive" updates in the next six months about reserves at the Rajasthan block, as well as possibly from its Sri Lanka reserves, the investment bank added.

Despite a recently proposed hike in oil production taxes from the Indian government, UBS upgraded Cairn's fiscal 2013-14 earnings-per-share by 3-4%.

Cairn shares dropped 9.5% in March, dragged down by profit worries after the announced cess hike , under-performing a 1.7% fall last month in the broader Nifty index.

Read more on:   
|
|
|
|

Cairn India up 3% on UBS upgrade, oil price rise

UBS said Cairn was a good proxy to play the rising crude prices and the weakening rupee, while saying it expected a "healthy" dividend from the unit of UK-based explorer Cairn Energy sometime in the next three months.

Shares of oil explorer Cairn India rose 3.8% to Rs 353.90, tracking gains in crude oil prices and after UBS upgraded the stock to "buy" from "neutral" and raised its target price to Rs 400 from Rs 375.

UBS said Cairn was a good proxy to play the rising crude prices and the weakening rupee, while saying it expected a "healthy" dividend from the unit of UK-based explorer Cairn Energy sometime in the next three months.

Cairn was also "likely" to announce "positive" updates in the next six months about reserves at the Rajasthan block, as well as possibly from its Sri Lanka reserves, the investment bank added.

Despite a recently proposed hike in oil production taxes from the Indian government, UBS upgraded Cairn\'s fiscal 2013-14 earnings-per-share by 3-4%.

Cairn shares dropped 9.5% in March, dragged down by profit worries after the announced cess hike , under-performing a 1.7% fall last month in the broader Nifty index.

image

Read More

Credit ratings fell the most in three years: CRISIL

According to CRISIL, the Indian arm of Standard & Poor which rates over 9,000 issuers in India, credit ratings have fallen the most in three ...

Recommended for you

Advertisements

Quick Links

Market News

Sebi looking into concerns over commission cap in MF industry

AMFI's decision to implement cap on upfront commission from April has created a rift among large mutual fund houses and small players

Nearly 400 listed cos yet to appoint women directors

More companies expected to appoint women directors before April 1 deadline

Top 10 companies shed over Rs 1 lakh cr in m-cap

TCS top loser whose market capitalisation saw an erosion of Rs 18,304 cr

Foreign fund inflows hit $13 bn

Analysts expect the inflows to accelerate further in view of Parliament clearing bills related to insurance, coal allocation and mining

Commexes' turnover drops 41% till March 15 of FY15

Their business stood at Rs 98.57 lakh cr in same period of corresponding year

 

Back to Top