Cairn still a pretty good story: Jagdish Malkani, Member, NSE & BSE

In a chat with ET Now, Jagdish Malkani, Member, NSE & BSE, shares his views on Cairn.

ET Now: What are your reactions on Cairn's numbers?

Jagdish Malkani: Clearly disappointing. There are a number of issues. One is of course the change in depreciation norms. But the bigger problem is on the production front.

What has really spooked the market is this whole friendly loan issue. The money is not doing a whole lot in the savings account or whatever. But this has always been a governance issue with the group.

ET Now: But there is a consensus bull call on Cairn; now with these numbers and the uncertainty regarding to loans, would you change your view?

Jagdish Malkani: It is still a pretty good story. Everything they are doing — oil, energy, Rajasthan — is good. But the issues I speak of clearly do spook one. Even the issue of having an interim CEO for so long — it is not seemly for such a large company.

ET Now: Is there more to go in this price adjustment?

Jagdish Malkani: There could be, but then it does become a great buy. But I would be greedy and wait for a little bit more.