Company Update - Oil & Natural Gas Corporation - ICICI Direct

Key events

- Domestic natural gas price was revised from US$1.8/mmbtu to US$2.9/mmbtu on a GCV basis from October 1. A sharp increase of 62% augurs well for realisation of upstream companies

- Oil prices have also been on an upward trend for the last five quarters and are currently at nearly three-year high of US$83/bbl

Key triggers for future price performance

- Sustained higher crude oil prices and gas realisations can result in better profitability. If prices sustain at higher level, there is further upside potential to earnings and our target price

- Ramp-up in oil & gas production from newer fields

- Value unlocking from subsidiaries and other investments & lower holding company discount on investments

- High dividend yield and payout ratio

Shares of Oil & Natural Gas Corporation Limited was last trading in BSE at Rs. 160.40 as compared to the previous close of Rs. 168.10. The total number of shares traded during the day was 2950429 in over 30472 trades.

The stock hit an intraday high of Rs. 170.90 and intraday low of 159.50. The net turnover during the day was Rs. 481601483.00.

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

OilandNaturalGasCorporation INE213A01029 ONGC ExplorationandProduction ICICISecurities ICICIDirect