Credit Suisse cuts Cairn to 'neutral' after earnings miss

Written By Unknown on Rabu, 23 Oktober 2013 | 15.45

Credit Suisse has downgraded Cairn India to "neutral" from "outperform" after saying its July-September profit-after-tax and revenue missed estimates .

The investment bank says lower crude realisations "explains almost the entire magnitude of the miss" in revenue.

"With the recent stock move, and with only 12 percent potential upside left, we downgrade to neutral," Credit Suisse said in a note on Wednesday, referring to its target price of Rs 372.

Since April 1, Cairn shares surged 20.1 percent as of Tuesday's close, compared with an 8.1 percent gain in the NSE index during the same period.

Cairn India shares are down 1.3 percent at 0433 GMT.


On October 23, 2013, at 14:12 hrs Cairn India was quoting at Rs 318.10, down Rs 14.45, or 4.35 percent. The 52-week high of the share was Rs 349.90 and the 52-week low was Rs 267.90.

The company's trailing 12-month (TTM) EPS was at Rs 87.77 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 3.62. The latest book value of the company is Rs 178.05 per share. At current value, the price-to-book value of the company was 1.79.


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