Cairn India one of the best stocks to buy: Sandeep Bharadwaj

Sandeep Bharadwaj, Market Analyst, in an interview with ET Now talks about Cairn India.

Cairn India, do you think the stock could be a potential long term multibagger from these levels because of the new promoter it could expedite the expansion process?

We do not expect it to be a multibagger but it will eventually become a matured oil stock and what the investors will benefit from is that we expect at least 40% to 50% upside in the stock and after 2 or 3 quarters, you will see a huge dividend payout. So it will be along the lines of Total or BP or Exxon Mobil, the way they trade and it will be the most No. 1 defensive stock in the market compared to rest of the sectors and it will be our No. 1 pick in the oil and gas sector because this will be the only company which will not be a regulated entity. So of course over the next 1 year, people will start to prefer Cairn over the likes of BP, HP, ONGC or Oil India and the biggest overhang has been the deal irrespective of the decision whether it happens or it does not happen but the day any clarity emerges, we expect the stock to really move up from these levels. So it is a very very strong buy from our perspective.