Sell Cairn India With Target Of Rs 298

Sell Cairn India With Target Of Rs 298Stock market analyst Siddharth Bhamre of Angel Broking has maintained 'sell' rating on Cairn India Ltd stock with target of Rs 298.

According to analyst, the investors can sell the stock at Rs 310-312 with stop loss of Rs 317.

Today, the stock opened at Rs 308.90 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 321.30 and a low of Rs 208 on BSE.

Current EPS & P/E ratio stood at 5.54 and 55.51 respectively.

Cairn India announced that it has began transporting crude oil from Barmer field in Rajasthan via a novel 590 km constantly heated pipeline to its clients, bringing the transportation cost downward by around 85%.

Publicly owned ONGC holds 30% equity stake in Cairn India's Rajasthan block RJ-ON-90/1, which begun production in Aug 2009.

According to company's representative, before the commissioning of the pipeline, oil was transferred to the refineries of RIL and MRPL via trucks and ships that costed $8-10 per barrel.

It has declined to $1.5 per barrel due to the pipeline. In addition, the pipeline also facilitates higher offtake.

Cairn India has begun selling crude to Essar's refinery. It would soon commence selling to IOC. Production is presently 60,000 barrels of oil per day (bopd).

The completion of the pipeline and associated infrastructure permits the joint venture to sell crude oil to the refineries to steadily increase both production as well as sales.