The IIFL Securities Report: Buy Oil And Natural Gas Corp.

IIFL Securities has issued a buy call for Oil and Natural Gas Corp. (ONGC) at its current market price of Rs. 285.95. The brokerage firm expects the stock to rise to a target price of Rs. 295, representing a potential upside of around 3%. IIFL Securities is bullish on ONGC due to its strong fundamentals, including its dominant market position in the Indian oil and gas industry, its extensive exploration and production (E&P) portfolio, and its robust financial performance. The brokerage firm believes that ONGC is well-positioned to benefit from the rising demand for energy and the increasing prices of oil and gas.

About Oil And Natural Gas Corp.:

Oil and Natural Gas Corporation (ONGC) is India's largest oil and gas exploration and production company. It is a public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. ONGC is engaged in the exploration, development, and production of crude oil and natural gas in India and abroad. The company has a presence in over 17 countries and is India's largest producer of crude oil and natural gas. ONGC is also a major player in the global energy market and is listed on the National Stock Exchange (NSE) of India.

52 Week Price Trend:

Oil and Natural Gas Corp. (ONGC) shares have shown a notable recovery in recent times, with its current market price (CMP) standing at Rs 285.95. Despite facing challenges posed by the COVID-19 pandemic and geopolitical uncertainties, ONGC's stock has outperformed the broader market, trading significantly higher than its 52-week low of Rs 146.5. While the 52-week high of Rs 281.15 remains elusive, the company's strong financial performance and strategic initiatives have boosted investor confidence, leading to a positive outlook for ONGC's future growth prospects.

Stratzy's MOST Analysis:

ONGC's BBB rating from Stratzy's MOST framework suggests that it possesses medium fundamental risks. The rating is based on an evaluation of the company's management, outlook, safety, and trend. ONGC's management is seen as having a good track record and a clear strategy, while its outlook is viewed as favorable due to its dominant position in the Indian oil and gas sector. The company's safety record is also strong, and its trend is positive, with consistent growth in revenue and profitability. Overall, ONGC is considered a company with moderate fundamental risks, making it a suitable investment for investors with a medium risk tolerance.

Company's Fundamentals:

Oil and Natural Gas Corp. (ONGC) is an Indian oil and gas exploration and production company. Its stock price-to-earnings (PE) ratio of 7.4 indicates that its stock is undervalued compared to its earnings potential. The price-to-book (PB) ratio of 1.1 suggests that its stock is reasonably priced relative to its book value. ONGC's dividend yield of 4.17% provides investors with a regular income stream. Overall, these metrics suggest that ONGC is a potentially attractive investment for value-oriented investors seeking a combination of growth and income.

Fundamental and Technical information provided in this blog were last updated on 05 Jul, 2024

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