Cairn India - what is wrong with this stock

hi all ..can some one tell me why cairn india is at such low valuations. the stock is 5 trailing PE, .7 of book value, dividend yield is 5%.

row is 20% of so..no debt and total current assets are 18Cr and market cap is only twice current assets. that mean the rest of the business is only valued at 20cr.
even if the profits go down 50% which is how much the crude oil has fallen the stock is at 10PE..

i understand that crude oil is at all time low prices...but i am unable to see why such low valuations.
is it all the things that management does or is it just fear that's pulling this stock down.

does anyone follow this stock can you please let me know

 

I think that $ is bound to come down sharply sooner or later. We havent seen the effect of huge Savings the GOI is making due to the steep crude fall. Theoretically,the imports should come drastically down as crude is a major part of India's imports, and as a result INR should strengthen considerably. We havent seen much of that. I wonder why.

I see USD stabilising in the 55INR range in less than a year's time.

So, I wouldn't bet too much on Cairn right now. But that's only me!!

 

thank you...great analysis by all of you

 

i will never invest in cairan as i do not rust the promoter