Bullish on Cairn India: Pankaj Pandey, ICICI Direct

In a chat with ET Now, Pankaj Pandey, Head of Research, ICICI Direct shares his views about oil and gas sector.

ET Now: What is the call on oil and gas space, like Oil India, Cairn India?

Pankaj Pandey: In oil and gas space, we would prefer upstream companies because what we are believing is that crude is unlikely to come down and probably this year we will have an under recovery of Rs 130,000 crores and a similar figure might be there in FY13 as well. If your upstream company share about 38% of that burden, even with that companies like Oil India would be available at eight times forward basis, which is quite attractive. Cairn India also can be looked at from that perspective because crude oil prices will definitely benefit this company.