The shares of ONGC inched marginally higher and closed at Rs 128.8 on Tuesday. In the past month, the stock has been volatile and shed approximately 1.5 per cent.
A few days ago, Oil & Natural Gas Corporation Limited (ONGC) announced that the company through its offshore arm ONGC Videsh Ltd. is planning to buy a stake in a hydrocarbon asset of the Abu Dhabi National Oil Company, UAE’s largest oil company. The investment, along with Bharat PetroResources Ltd and Oil India Ltd will further strengthen India’s upstream oil investments in the Gulf region.
Today the company announced that it is set to make a proposal to retake a 20 per cent stake in Russia’s Sakhalin-1 oil and gas project in the east, through its subsidiary ONGC Videsh Ltd.
Here’s what analysts have to say about the stock:
Antique Stock Broking has maintained a ‘Buy’ rating on the stock with a target price of Rs. 206 for ONGC stock which represents an upside of 61 per cent from the current levels.
“ONGC and Oil India are supposed to benefit the most from the surge in gas prices. The rise in gas prices shall push the EBITDA (earnings before interest, tax, depreciation, and amortization) upwards at 4 to 7 per cent,” Antique Stock Broking added.
Further, brokerage firm ICICI Securities has given a ‘Buy’ rating on the stock of ONGC with a target price of Rs. 185 per share which represents an upside of 45%.
The Oil and Natural Gas Corporation (ONGC) is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas. While OVL is the overseas subsidiary of ONGC which holds participating interests (PI) in 33 oil and gas assets across 15 countries.
The company has a market capitalization of Rs 1,61,908 crores and a dividend yield of 8.16% as of October 18th, 2022.
Written by Anoushka Roy
