Cairn India – The cheapest barrel in the Asia Oil & Gas space

We have analysed the potential of Cairn India Limited on the basis of its declared reserves including EOR (Enhanced Oil Recovery) reserves, 1P (estimated proved) reserves and 2P (estimated proved plus probable) reserves and our conclusion is that the stock is grossly undervalued at the current market rate. We recommend a ‘Buy’ in the stock with a target price of Rs.339.