Morgan Stanley has reiterated its “Overweight” rating on ONGC, with a target price of ₹430, representing a potential upside of nearly 46% from the current market price of ₹295. The brokerage highlights significant potential in ONGC’s international operations, particularly the potential reserve accretion in Azerbaijan.
The consortium, which ONGC is a part of, is planning to monetize non-associated gross natural gas reserves of 4 trillion cubic feet (tcf), a key driver of future growth. Though international operations have been a drag on returns in the past, Morgan Stanley notes that trends in production and reserve accretion are now improving, setting the stage for stronger performance ahead.
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