Our usual disclaimer will not suffice. We never tire of assuring you that our references to stocks are above board. However, we should also warn you that this post about Cairn Energy Plc (LON: CNE) is not a fairy tale.

What do you say about a stock with a Net Profit Margin of 533.86%? That is not a flash in the pan, but sustained business performance over the last four quarters. The stock is listed on the London stock exchange. A subsidiary is listed on the stock market in India. The management has produced a staggering 91.46% return on average equity on a Trailing Twelve Months basis.

The company is almost colonial. It is based in Edinburgh, but has chosen the Indian sub-continent as its business arena. It produces oil and gas in India, Bangladesh, and Nepal. It has made powerful bids to start enormous new business in Sri Lanka. The management seems to have the Midas touch in energy terms. It strikes huge revenues in most of its exploration sites. The management adapts its key business strategies to local operating conditions. It has new pipeline projects on the anvil in India. The company plans to expand business in Bangladesh as well.

This stock seems to be like an oasis of generous returns and appreciation in arid investment climes. The company has a market capitalization of nearly $4 billion. The stock has traded during early March 2008 at nearly twice the 52-week low. Prospects for the near term appear to be very encouraging.

Would you like more stock leads like this one? Would you care to write about a similar company, which you think that our community should consider for investment? You can join our forum and start posting right away.