Oil & Natural Gas Corporation Ltd (ONGC) stock opened its trading session today at Rs 150.70 and currently trades at Rs 155.75. The scrip has gained more than 3 percent as compared to the previous closing price of Rs 150.60. In the last six months, the stock has delivered returns of about 17 percent to its stakeholders.
The company, through a regulatory filing with the exchange, informed that it has bought 11,520,000 shares of Mangalore SEZ Limited from IL&FS at a total consideration of Rs 40.32 crores. It further added that the acquisition will be completed within a period of one year. After this acquisition is done, the equity stake of ONGC will increase from 26 percent to 49 percent in MSEZ.
ONGC is an Indian-based company carrying out its business as a public sector undertaking for the Government of India. It is engaged in the process of exploration, development, and production of oil and natural gas.
The company operates in both, onshore and offshore fields, globally through joint ventures and partnerships. The leading revenue generator for the company has been crude oil production. Apart from the above, the company engages in the transportation and refining of hydrocarbon products.
The basic operational parameters of the company such as the revenues generated and PAT figures have increased in recent quarters. Revenues increased from Rs 1,68,656 crores in Q2 to Rs 1,69,213 crores in Q3. Moreover, the net profits of the company moved from Rs 7,291 crores in Q2 to Rs 10,682 crores in Q3.
In continuance to the above, the profitability ratios of the company such as the ROE and ROCE have improved on a YoY basis with ROE moving from 9.55 percent in FY20-21 to 19.91 percent in FY21-22. ROCE figures moved from 10.67 percent in FY20-21 to 16.86 percent in FY21-22.
The debt to equity ratio of the company has also seen a positive impact with a reduction in numbers from 0.54 in FY20-21 to 0.42 in FY21-22.
According to the data available as of the December quarter, promoters hold a 58.89 percent stake in the company. FIIs, on the other hand, have reduced their stake from 8.96 percent in Q2 to 8.43 percent in Q3.
Written by Amit Madnani
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