Buy Oil And Natural Gas Corporation, target price Rs 124: ICICI Securities

ICICI Securities has given a buy rating to ONGC with a target price of Rs 124. The share price moved down by 2.13 per cent from its previous close of Rs 70.50. The stock’s last traded price is Rs 69.

Oil And Natural Gas Corporation Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 87747.45 Crore) operating in Gas & Petroleum sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 62496.06 Crore, down 40.19 % from last quarter Sales of Rs 104488.95 Crore and down 42.93 % from last year same quarter Sales of Rs 109514.82 Crore. The Company reported net profit after tax of Rs 1650.91 Crore in latest quarter.

Investment Rationale
The brokerage expects gains for ONGC in the near term from the imminent revision in gas price formula and in the medium term from gas price deregulation.

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of June 30, 2020, while FIIs held 8.1 per cent, DIIs 17.4 and public and others 14.1 per cent.