Cairn India was in action after it announced its numbers post market hours on Wednesday. Commenting on the quarterly results, Amar Ambani, Head of Research, IIFL, said, “While valuations look attractive the risk factors are many to take into consideration. These include flat production guidance, increasing profit petroleum share, rising production costs, impending merger risks, soft crude oil price outlook, cut in capex guidance and Product Sharing Contract only up to 2020 would continue to weigh on the stock. Cash of Rs15,597cr vs market cap of Rs28,882cr provides some valuation cushion. With the price gap between Vedanta and Cairn India increasing substantially the merger is now at risk. We maintain our Accumulate rating.”