ONGC share price: Buy Oil And Natural Gas Corporation, target price Rs 163: HDFC Securities

0
HDFC Securities bought a call option on Oil And Natural Gas Corporation with a target price of Rs 163. The current market price of Oil And Natural Gas Corporation Ltd. is Rs 137.95 The period given by the analyst is six months when Oil And Natural Gas Corporation Ltd. the price can achieve the defined target.

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.



Finance
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%.

(Disclaimer: The opinions and recommendations given in this section are those of the analysts and do not represent those of ETMarkets.com. Please consult your financial advisor before taking any position in any of the stocks mentioned.


Source link

Leave A Reply

Your email address will not be published.