Cairn India rallies nearly 5% on buyback plan of equity shares

NEW DELHI: Cairn India Ltd rallied as much as 4.9 per cent in morning trade on Friday, after the company informed stock exchanges of a board meeting that will be held next week to discuss buyback plans.

Cairn India Ltd has informed BSE that a meeting of the Board of Directors of the company will be held on November 26, 2013, to consider the proposal for the buyback of equity shares of the company.

Shares of the company have moved in a range so far in the month of November, up nearly 1 per cent, as of data collected on 21 November.

Most brokerages remained bullish on the oil & gas major Cairn India after its strong second quarter results, released last month. They expect the company to continue to perform better in the second half of FY14.

They have maintained their 'buy' rating on the stock and expect it to move past Rs 400 per share in value in next 12 months time.

Cairn India reported a net profit of Rs 3,380 for quarter ended September 2013 as compared to a net profit of Rs 2,320 crore in the corresponding quarter last fiscal.

Top-line increased to Rs 4,650 crore, up 4.7 per cent y-o-y on the back of higher realisations of crude oil after the rupee depreciated against the US dollar.

EBITDA grew to Rs 3,533 crore, up 2.4 per cent, y-o-y. Cairn India reported exceptional forex gain of Rs 429 crore compared to forex loss of Rs 786 crore in 2QFY2013.

The company reiterated it will achieve a gross production target of over 225,000boepd including over 200,000boepd from the Rajasthan block in FY14.