Net profit margin (cons.) 2013 2012 2011 2010 2009 2008 2007
68.80 66.93 61.91 67.10 58.65 -2.48 -48.17
Net profit margin(adj.) 2013 2012 2011 2010 2009 2008 2007
64.39 62.39 61.37 51.20 40.08 -2.59 -44.84
add: it is high mainly because you don't need to invest year after year to keep the production in line, its one time investment in oil wells......
Net profit margins are just the tip of the ice berg, companies profit might be increasing but its book value is not. that is the main cause why the market has ignore this company, and its slight undervalued now, its fair value is 400-460Rs per share, if one is sure that the company is hedged against the currency fluctuations then he can invest into it.
add:
airn India has announced a proposal for a buyback from the open
market at a price not exceeding | 335/share, with an indicative maximum
shares of 17.1 crore and the quantum of the buyback not exceeding
| 5725 crore. The buyback process will start in January 2014, post the
approval of shareholders. The limits of the proposed buyback imply a
reduction in the equity capital by 8.9%. Cairn Plc, which holds a 10%
stake in Cairn India, can participate in the buyback. Although the buyback
price is merely at 4% premium to the CMP, the buyback addresses
concerns over cash utilisation and also provides support to the stock
price. With a cash balance of $3.2 billion, yearly cash flow from operation
at ~$2 billion and yearly capex plan of $3 billion for the next three years,
the buyback programme is a good move.