See significant upside in Cairn India: Suresh Mahadevan, UBS Securities

In a chat with ET Now, Suresh Mahadevan, UBS Securities, shares his views on Cairn India

ET Now: In that same light you also have a contra call on Cairn India. Cairn India, for the year 2012, has been a massive underperformer. They have got all the necessary approvals in place. In fact, there is one big approval which came two weeks ago but somehow the stock is not capturing all the good news?

Suresh Mahadevan: Yes, certainly this is a stock which we think will see some re-rating because at the current level it is implying crude prices of maybe $75 or so. Our long term numbers are around 95, so there is significant upside to this particular stock in the coming months particularly so if more approvals come through and if there is no visibility on their production going up, that will also act as a catalyst. We are quite positive on this name. It is one of our top five or six names out of the 145 odd names we cover. So suddenly our analyst is quite convinced that it is a strong 'buy' at current levels.