CMP Rs323, Target Rs293, Downside 9.3%
± Net
sales witness quantum jump as Mangala field achieves maintains its peak
production rate of 125,000 barrels of oil per day (bopd)
± Realization for Rajasthan crude continues to be at 10-15% discount to Brent much in line with company’s guidance
± OPM jumps 852bps yoy on account of benefits of operating leverage
± Company is holding
a postal ballot of all the shareholders to consider the conditions
imposed by the GoI such as royalty being made cost recoverable and
ending the arbitration on cess
± These
steps will erode Rajasthan field NPV by Rs45/share. Maintain Market
Performer rating with a revised 9-month target price of Rs293
