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Cairn India Ltd. (Amalgamated) Stock Analysis

Large Cap
Evaluated by 7599 users | BSE: 532792 | NSE: CAIRN |
Oil Exploration
Cairn India is one of the largest independent oil and gas exploration and production companies in India with a market capitalisation of nearly US$ 10 billion. Cairn India was rated as the fastest-growing energy company in the world, as per 2012 & 2013 Platts Top 250 Global Energy...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Cairn India Ltd. (Amalgamated) has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'06Dec'07Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Capital Employed -0.07%0.4%1.76%2.41%16.48%16.77%24.13%22.23%9.43%-3.78%
Value Creation Index NA-0.97-0.86-0.770.320.290.610.48-0.37-1.25
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 931,0121,1461,62310,27811,86117,52418,76214,6468,626
Y-o-Y Gr. Rt.-988.7%13.2%41.6%533.3%15.4%47.8%7.1%-21.9%-41.1%
Adjusted EPS (Rs.) -0.280.662.474.6833.6739.8461.1761.1129.19-10.95
Y-o-Y Gr. Rt.-NA274.2%89.5%619.4%18.3%53.5%-0.1%-52.2%-137.5%
Book Value per Share (Rs.) 396.92164.99138.19177.37211.28253.13249.61300312.78258.92
Adjusted Net Profit -50.11184688886,4037,59911,68511,6585,472-2,052
Net Op. Cash Flow (Rs. Cr.) -1445507741106,3387,06911,05611,0949,5204,134
Debt to Cash Flow from Ops -8.620.574.5310.420.180000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Cairn India Ltd. (Amalgamated) should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 65.4%-3.4%-21%-41.1%
Adjusted EPS NA-179.9%-156.4%-137.5%
Book Value per Share -4.64.21.2-17.2
Share Price 0.3% 13.7% - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'06Dec'07Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Equity (%) -0.070.41.882.6617.2717.1624.3522.189.41-3.81
Operating Profit Margin (%) -46.0720.2731.3939.0881.3378.8274.3772.9458.1939.01
Net Profit Margin (%) -47.3311.6840.7954.7262.364.0766.6862.1437.36-23.79
Debt to Equity 0.020.010.130.10.070.030000
Working Capital Days 034526330995145156252474931
Cash Conversion Cycle 0-94-473-572-89-36-28-2-7-19
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 59.85%
Institutions 26.73%
Non-Institutions 13.42%
Pledged *65.8165.8165.8157.4957.4957.4957.4957.4957.4957.49
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Cairn India and arrived at the following conclusion:

Past 10 year's financial track record indicates that Cairn India is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Cairn India's performance infers:

Cairn India earnings have declined by -179.9%, whereas share price has appreciated 13.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Cairn India share prices over the last 10 years. Here is what we found out:

Cairn India share price has appreciated -1.4% annually over the past ten years.

Cairn India is one of the largest independent oil and gas exploration and production companies in India with a market capitalisation of nearly US$ 10 billion. Cairn India was rated as the fastest-growing energy company in the world, as per 2012 & 2013 Platts Top 250 Global Energy Company Rankings.

Cairn India operates around 30 per cent of India’s domestic crude oil production. Cairn India is part of the Vedanta Group, a globally diversified

Cairn India is one of the largest independent oil and gas exploration and production companies in India with a market capitalisation of nearly US$ 10 billion. Cairn India was rated as the fastest-growing energy company in the world, as per 2012 & 2013 Platts Top 250 Global Energy Company Rankings.

Cairn India operates around 30 per cent of India’s domestic crude oil production. Cairn India is part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminium, copper, zinc, lead, silver, iron ore, etc. Through its affiliates, Cairn India has been operating for close to 20 years playing an active role in developing India’s oil and gas resources. To date, Cairn India has opened 4 frontier basins with over 40 discoveries, 31 in Rajasthan alone.

The Mangala field in Rajasthan, discovered in January 2004, is the largest onshore oil discovery in India in more than two decades. Mangala, Bhagyam and Aishwariya fields - major discoveries in the Rajasthan blockhaave gross ultimate oil recovery of over 1 billion barrels.

Cairn India has a portfolio of 9 blocks - one block in Rajasthan, which contains multiple assets, two on the west coast and four on the east coast of India and one each in Sri Lanka and South Africa. Oil and gas is currently being produced from Rajasthan, Ravva and Cambay.

During June 2010, Cairn India and ONGC, the 70:30 joint venture partners in the Rajasthan Block, RJ-ON-90/1, commenced sales through the world’s longest continuously heated and insulated crude oil pipeline.

In Mach 2011, the Government of Sri Lanka (GOSL) signed Memorandum of Understanding (MoU) with Cairn Lanka, wholly owned subsidiary of Cairn India, to help in the construction and setting up of libraries at a number of schools identified by the GOSL in the Moneragala district for the benefit of children in the area.

The company has received ISO 14001 certified and OSHAS 18001 certification for its operating sites.

Awards

  • Cairn India has been felicitated with the Golden Peacock Award for Business Excellence 2014.
  • Cairn India was felicitated with BusinessWorld Award for India’s Fastest Growing Company in middleweight category. Cairn India was ranked as India’s fastest growing company in Middleweight category (revenues in the range of Rs 5,000 crore to Rs 9,999 crore) for FY2014.
  • Cairn India’s Ravva asset was awarded the prestigious CII Southern Region "Excellence Award in EHS 2013"awards.
  • Cairn India was awarded the prestigious ‘FICCI Corporate Social Responsibility Award - 2013’ under ‘Category : Private Sector Companies with INR 3001 Crores per annum and above turnover’.
  • With a three-year CAGR of 121%, Cairn India Ltd was named as the world’s fastest growing energy company, for the second year in a row, in the Platts Top 250 Global Energy Company Rankings 2013.
  •  
  • 2012 -Cairn India won PetroFed Pipeline Transportation Award.

             -Cairn India was awarded the Blue Dart Global CSR Award for 'Best Corporate Social Responsibility Practice Overall'. The award was presented by the Corporate  Affairs Minister M Veerappa Moily at the Global CSR awards in Mumbai.

  • Cairn India's Mangala Development Pipeline Project stood runners up in the 'Project of the Year Award' at the Project Management National conference 2011 held on 8 September, 2011 in Bangalore.
  • Cairn India was accorded the 'Superbrand' status on 27 July, 2011.
  • Cairn India won the ‘Golden Peacock Award for Corporate Social Responsibility’ for the year 2011.
  • Cairn India and ONGC joint venture commissioned the world’s longest continuously heated and insulated pipeline in June, 2010.
  • 2010 - Cairn India Ltd has been awarded ''CARE AAA (Triple A)'' rating by the Credit Analysis and Research Limited (CARE) for its INR 4,000 crore domestic borrowing, which is helping to finance the development of its world class oil fields In Rajasthan.
  • -Cairn India’s Managing Director & CEO, Rahul Dhir, received the prestigious Young Entrepreneur Award in the OCEANTEX World Expo 2010. -Cairn India received the Oil & Gas Deal of the Year - 2009 award for Asia Pacific region by Project Finance International (part of the Thomson Reuters Group) for having completed the financing arrangements for USD 1.6 billion at competitive pricing.-Cairn India tops the Platts ranking of Global Energy Companies; Reliance Industries Ltd and ONGC slips down. -Cairn India wins Spotlight Awards by League of American Communications Professionals -Cairn India won the 'Golden Peacock Award for Corporate Social Responsibility' during the year -Cairn India was awarded the 'Superbrand' status on 27 July, 2011. The award was received by Manu Kapoor, Director - Corporate Communication, Affairs & CSR, Cairn India from Planning Commission Deputy Chairman Montek Singh Ahluwalia at a grand ceremony in New Delhi.'

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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