Energy to your portfolio - Buy Cairn India
Cairn India which is an Indian arm of Cairn Energy Plc, which is mainly into Oil and Gas exploration and production, Cairn India has become one of the leading players in oil and gas industry. Cairn which came with an IPO in January 2007 has garbed considerable amount of market capital and has become India’s fourth largest oil and Gas Company
Cairn has mainly operating its exploration business in Rajasthan, in 2004 the company made one of the largest oil discoveries in India. Recently company also made oil and gas discovery in Rajasthan,
The company has announced following numbers in its Sep 2008 quarter results.
The consolidated Profit before tax for Q3 2008 was Rs. 3,600 million (US$ 82.5 million) and for Q3 2007 was Rs. 674 million (US$ 16.6 million).
The consolidated Profit after providing for tax (including deferred tax and FBT) for Q3 2008 was Rs. 2,933 million (US$ 67.2 million) and for Q3 2007 was Rs. 232 million (US$ 5.7 million). Tax (including current tax and deferred tax) is calculated at entity level and not on a consolidated basis; losses arising within one jurisdiction are not available for offset against profits arising in another.
The Companies stock price made its life time high of Rs.342.70 when crude oil touched record high, and has treaded as low as 88.20 in last 52 weeks. Now the company trading in trading range of 140-170, at current market price the stock is at higher side of the trading range, investor with long term view can buy the stock for target of 300+ in years time.
With company making new oil and gas discovery and crude oil prices getting consolidating around the 38-48 mark the company can make good profits going forward.