Crude Oil & Natural Gas · ONGC
Oil Drilling & Exploration
from 240 today
We recently upgraded ONGC on inexpensive valuations, modest production growth and greater operational freedom amid multi-year government focus on energy security, with the risk-reward staying attractive due to high dividend yield, constructive crude outlook, and OVL's turnaround.
ONGC reported Q1FY27 revenue and earnings that beat estimates, helped by higher realizations and lower opex/dry-well costs, despite a disappointment in production volumes. Maintain BUY with a revised target price of INR 347/sh (and INR 343 mentioned in summary data blocks).
Oil and gas production volumes were in line with estimates while realization, revenue, EBITDA, and PAT exceeded expectations. We maintain our 'Accumulate' rating with a revised target price of INR273 based on 8x FY28E EPS for the standalone business along with the value of investments.
We model ~1% volume growth overall and value the standalone business at 6.5x Dec’27E EPS, investments at a 25% discount to CMP, and OVL stake at 0.5x FY25 BVPS to arrive at our TP of INR290. Reiterate BUY.
We model ~1% volume growth overall and value the standalone business at 6.5x Dec’27E EPS, investments at a 25% discount to CMP, and OVL stake at 0.5x FY25 BVPS to arrive at our TP of INR290. Reiterate BUY.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
