Cairn India is a great buy: Prakash Diwan, Asit C. Mehta Investment Intermediates Ltd.

Prakash Diwan, Head-Institutional Clients Group, Asit C. Mehta Investment Intermediates Ltd., talks to ET Now on Cairn India.

Is there merit in buying Cairn India because for Cairn India the realisations, they are linked to import parity because rupee has depreciated against the dollar, that company eventually will hit a jackpot?

No, that’s not the only reason. Of course that’s very imminent but the other thing is their ability to scale up, ramp up production in this weak spot that they find themselves in suddenly with the rupee-dollar parity and the prices of crude.

It is a winner in the hands of the Vedanta Group and they will definitely turn it around in terms of efficiency and also move it further up, so it is a great buy. There is a very high margin of safety. There is not much that it can lose, so in a situation like this, it is a great place to hide as well as make some quick money.