Karvy Stock Broking Limited has maintained ‘Buy’ rating on Cairn India stock with an intraday target of Rs 250.

According to Karvy, day traders can purchase the stock between Rs 232-234 with a strict stop loss of Rs 226. The stock pricing becomes more attractive, and reach above Rs 252, if the stock market remains on positive track.

Shares of the company, on Tuesday (August 06), closed at Rs 237.15 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1221278. The share price has seen a 52-week high of Rs 342.50 and a low of Rs 134.60 on BSE.

The outlook for the stock is very strong, and it will really outperform the stock market today.

The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.

For the quarter ended June 30, 2008, the company’s consolidated profit swung to Rs 1,385.80 million as compared with net loss of Rs 714.40 million for the quarter ended Jun. 30, 2007. Total Income increased 65.72% to Rs 4,614.30 million for the quarter ended Jun. 30, 2008 from Rs 2,784.40 million for the quarter ended Jun. 30, 2007.

On a standalone basis, the loss for the three months period ended June 2008 widened to Rs 466.80 million, as against Rs 75.69 million in the same period, last year. It registered loss of Rs 0.25 a share during the quarter compared with Rs 0.04 a share in prior year period. Net sales during the quarter rose 2.69 times to Rs 9.70 million, while total income for the quarter jumped 2.55 times to 225.80 million.

The construction of the Rajasthan project is now in progress to offer much needed additional domestic crude supplies during the second half of the coming year (2009). The growth of both pipeline and its related functions together with the processing facilities at Mangala are on target and all the major contracts for vital equipment have been placed in competitive market conditions.

In addition Cairn India continues to source new land to help build future growth chances.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes ONGC, GAIL, Reliance Natura and Shiv Vani Oil.