Buy Cairn India To Achieve Short-Term Target Of Rs 305: Nirmal Bang

In its latest research report, Nirmal Bang, an equity research firm said that Cairn India, which has been consolidating between Rs 255-265 level, can give good returns in the short term.

The report further stated that, if the counter is successful to breach Rs 264 levels, then it will hit a target of Rs 305.

Nirmal Bang has also advised traders to hold Cairn India’s stock as it is showing positive signs, which give an indication of a strong breakout.

The stock has strong support at Rs 256.

On Friday (Sep 25), the shares of the company closed at Rs 261.25 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 0.68 & 389.26 respectively. The share price has seen a 52-week high of Rs 275.25 and a low of Rs 88.15 on BSE.

Cairn Energy Plc, the U.K.-listed explorer centered on the Indian market, aims to appoint two offshore drilling rigs as it hunts for new oil and gas deposits in the South Asian market.

Moreover, the explorer demanded bids for one rig each in India and Sri Lanka. Cairn has decided to drill in the Sri Lankan market by Jan next year and off India’s east coast by Oct 2010.

Cairn commenced production from its largest Indian field during Aug 2009. The total number of rigs utilized by oil and gas explorers in Asia dropped 9% in August as the worldwide slump exhausted demand for energy and cut down credit.

Cairn India and its partner ONGC, on Aug 27, announced that it would make an investment of over $1.5-1.8 billion in the desert block by the next two years.

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