ONGC SHARE PRICE: Brokerage firms have predicted an Oil and Natural Gas Corporation (ONGC) shares to rise by about 50 per cent from the current level. This estimate is made after the company announced the results of the March quarter. Global brokerage firm CLSA has rated ONGC shares of “High Convision Outpour” and has fixed a target price of Rs 360 per share. This is estimated to rise in the company’s shares by about 44.6 per cent from Wednesday’s closing price of Rs 248.99.
The CLSA said the ONGC’s March quarter had a standalone operating profit (Ebitda) 3 per cent less than its estimates. At the same time, his net profit was Rs 6,450 crore in the March quarter, which was about 22 percent less than its estimates. The main reason for this was the right-off of a large drywell during the March quarter.
The company’s March quarter increased 5% and 4% to 413 thousand barrels per day (KBPD) and 54.4 million metric standard meters per day (MMSCMD) in the March quarter. The main reason for this was the increased production from the KG-98/2 region. The CLSA also stated that the ONGC’s gas price realization has increased by 4%, which has been mainly increased by the increase in gas production from new wells.
Meanwhile, Brokerage Jefferies has rated the ONGC shares “BUY” and has fixed a target price of Rs 375 per share. This is estimated to be about 50.6 percent of its Wednesday’s closed price.
Jefferies said the company’s March quarter Standelone Operating Profit (EBITDA) was 9 per cent higher on an annual basis, but on the quarterly basis it had a slight change and was less than its estimates. Apart from this, the company’s net profit was also 31 percent less than its estimate due to a right-off. Jefferies said the company’s crude and gas production have been the most consecutive quarter bounce.
March quarter results
ONGC’s consolidated net profit declined by 20.18 per cent to Rs 8,856.33 crore in the March quarter, which was Rs 11,096.03 crore in the same quarter a year ago. At the same time, the company’s consolidated revenue stood at Rs 1.70 lakh crore during this period, which is slightly less than Rs 1.72 lakh crore in the same quarter of a year ago. The company also announced a dividend of Rs 1.25 per share with quarterly results.
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