ONGC share price: Buy Oil And Natural Gas Corporation, target price Rs 163: HDFC Securities
Oil And Natural Gas Corporation Ltd., incorporated in 1993, is a large cap company (with a market capitalization of Rs 173,419.15 Crore) operating in the oil and gas industry.
The key product / revenue segments of Oil And Natural Gas Corporation Ltd. include crude oil, natural gas, naphtha, ethane, propane, C2 / C3 (ethane / propane), butane, HSD, subsidies, premium kerosene oil, electricity, LSHS , other Revenue, Aviation Turbine Fuel (ATF), Mineral Turpentine (MTO), Processing Fee, Other for the year ending March 31, 2021.
For the quarter ended 30-06-2021, the company reported total consolidated income of Rs 109,301.82 crore, down -7.53% from last quarter total income of Rs 118,206.16 crore and in 71.92% increase over last year in the same quarter. Total income of Rs 63,575.47 crore. The company reported after-tax net profit of Rs 6,242.23 Crore in the last quarter.
Justification of the investment
Investors could buy at CMP and add more on declines to Rs. 121.5-123.5. The base case fair value of the share is Rs 149 (6.5xFY23E EPS plus the current value of listed investments after a 30% discount) and the bullish fair value of the share is Rs 163 (7xFY23E EPS plus the current value of listed investments after a 30% discount) over the next 2 quarters. At the CMP of Rs 137.75, the stock trades at 5.85xFY23E EPS plus the current value of listed investments after a 30% discount.
Promoter / FII Holdings
The promoters held 60.4% of the company’s capital as of September 30, 2020, while the FIIs held 7.7%, the DII 17.5% and the public and others 14.4%.
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