Cairn numbers on anticipated lines: Sanjeev Prasad

Sanjeev Prasad, ED & Co Head, Kotak Institutional Equities, talks to ET Now on Cairn numbers.

Your thoughts on Cairn and whether the outperformance after the brilliant quarter that we have had from the company is going to continue?

On Cairn, I am not too sure what was so brilliant about the quarter. It was on anticipated lines. The numbers came out about 22.6, most people had about Rs 22 billion of net profit, so I just thought I would correct that.

Coming to the stock you value the stock depending on what long term fuel price assumption you take. If we takes it next two-three years somewhere between 100 to 105 and longer term more than 90 starting from fiscal 2015, rupee dollar rate of say 50 then we get somewhere about 355 as the fair value of the company.

If I increase the long term value to say $100 per barrel starting from fiscal 2015 again then you get about 380-390 as fair value. So, it depends on what long term fuel price assumptions you take. At current level it is looking reasonably valued.

I am not too optimistic on fuel prices from here on, barring the Iran issue.