ONGC Ltd - Q4 FY21 Result Report - YES Securities

(Rating: ADD, TP: Rs140, Upside: 16%)

- Operating Profit and PAT stood at Rs 81.5bn (+47% YoY; +25% QoQ) and Rs 67.3bn (+388% QoQ), vs an after-tax loss of Rs 31bn in 4QFY20.

- While QoQ and YoY higher crude oil realization at USD 58/bbl, aided profitability, a weak natural gas (NG) realization at ~USD 2/mmbtu coupled with weaker crude and NG production acted as a drag

- For FY21, while crude & NG realizations stood lower by 27% YoY and 38% YoY respectively, the production declined by 3.5% YoY and 8% YoY, respectively.

- Most of ONGC's field are ageing, with production on decline, therefore earnings remain highly levered to commodity prices.

- Assume coverage with an ADD rating and a TP of Rs 140/sh

Shares of OIL AND NATURAL GAS CORPORATION LTD. was last trading in BSE at Rs.122.35 as compared to the previous close of Rs. 120.9. The total number of shares traded during the day was 1646034 in over 11253 trades.

The stock hit an intraday high of Rs. 124.5 and intraday low of 121.9. The net turnover during the day was Rs. 202775692.

Source : Equity Bulls

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