Kotak upgrades Cairn India; shares gain

Shares in Cairn India gained 2.2 per cent after Kotak Institutional Equities upgraded the stock to "buy" from "add" and kept its target price of Rs 340, saying the current price provides a good entry point as valuations and expectations have turned reasonable.

"We find the risk-reward balance favourable now as the stock does not factor in potential upsides from Barmer Hill formation, 19 other discoveries and prospective exploration in Rajasthan block," Kotak said in a report.

The investment bank added that the stock has been penalized enough for missing its "aggressive" guidance.

Cairn India shares have fallen 14.6 per cent in 2013, as of Thursday's close.


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