Gains from Cairn India seen from a long-term perspective: Shrikanth Shetty

Shrikanth Shetty, Head Equity Advisory, Unicon Investment Solutions in an interview with ET Now talks about cairn India.

From a longer term perspective and given the fact that this deal still has a fair way to go where would you stand as far as the Cairn story is concerned?

From a longer term perspective Cairn would become a buy at lower levels. Whenever it stabilises, it will be a good buy from a longer term perspective because at least historically what we understand from the deals which have been happening which Anil Agarwal normally entered has been value place as I said earlier.

So though its not clear what value proposition currently we are seeing in Cairn because they have paid a fairly hefty price. Normally whenever Sterlite or even Vedanta has gone ahead and done the deals they have done it at typically less to price to book or in terms of replacement cost.

They have been doing it at lower prices than replacement cost and they have never pursued deals at a price beyond a particular point where they do not think it is value accretive so in that sense I would think they would have seen definitely some value there and thus from a longer term perspective one would see gains from Cairn India.