Shares of Oil and Natural Gas Corp rose as much as 2.76 per cent to Rs 171, highest since June 13, on strong results.
ONGC has reported higher net profit of 58.1 per cent at Rs 6,144 crore for the quarter ended June 30, 2018 against Rs 3,885 crore in the same period previous year. Revenues stood at Rs 27, 213 crore, up 42.7 per cent, from Rs 19, 073 crore last financial year.
According to Thomson Reuters I/B/E/S, the net profit was below street estimates of Rs 6,643 crore. It said that this was the third straight quarter in which profit has missed estimates.
According to Morgan Stanley, there was slow growth in reserve monetisation and downside risks in production growth outlook at the domestic and international operations. It has kept the rating unchanged at ”underweight” with a price target of of Rs 199.
About 25 of 31 brokerages rated the stock “buy” or higher, five ”hold” and one “sell” or lower; their median price target is Rs 220. ONGC stock has estimated PE of 6.68, lower than the sector average of 9.77.