ONGC shares up Should you be a buy after Q3 results, strong guidance?

 

Shares of Oil and Natural Gas Corporation Ltd (ONGC) rose over 3% on the BSE in early deals on Thursday

Shares of Oil and Natural Gas Corporation Ltd (ONGC) rose over 3% to ₹152 per share in early deals on Thursday on the BSE after the government announced its fortnightly revision on an unexpected tax on crude oil and exports of aviation turbine fuel and diesel. cut down. 15 February. The stock is also rising as the top oil explorer reported a 26% jump in third-quarter profit, helped by higher crude and gas prices.

“We believe ONGC will reverse its volume decline and is set to deliver 2% volume CAGR between FY20-25, mainly due to increase in 98/2 field production after registering a decline in the last five years. Powered by ramp-up. Oil and gas prices are expected to remain healthy. It is offering FY24/25 Avg. Dividend yield of 10%," said Antique Stock Broking while maintaining BUY rating on the stock with a target price of ₹208 per share.

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152.054.55 (3.08%)

Updated - 16 February 2023

153.25

high day

149.05

day less

7,72,483.00

Vol (BSE)


“ONGC reported EBITDA (after taking into account the impact of tax unforeseen during the quarter) in line with our estimates. First oil from KG Basin is expected in May/June'23. Another brokerage Motilal Oswal said, With strong realizations and increasing visibility of production growth, we reiterate our buy rating on the stock with a target price of ₹200.

ONGC reported a 26% increase in its net profit at ₹11,045 crore as compared to ₹8,764 crore in the same period a year ago. ONGC earned $87.13 per barrel of crude oil produced and sold in the third quarter of the current fiscal, as against $75.73 per barrel in the year-ago period. The company said that it made a total of seven oil and gas discoveries during the current financial year 2022-23.

“We maintain our buy rating (target price of ₹200) on stable earnings visibility and attractive dividend yield. We grew our FY23-25E earnings by 5-8%, generating higher O&G output, other income. Key risks: Unfavorable oil gas prices, policy issues, cost escalation, and dry holes," said MK at another brokerage.