Jefferies has reiterated its ‘Buy’ rating on ONGC, setting a target price of ₹420, suggesting a substantial 63% upside from the current market price (CMP) of ₹257.25. Key highlights from the report include:
- Q2 Standalone EBITDA: ONGC’s standalone EBITDA came in at ₹182 billion, 3% below Jefferies’ estimates due to slightly lower realizations, though domestic production remained largely flat quarter-on-quarter.
- Profit After Tax (PAT): Standalone PAT stood at ₹120 billion, up 17% quarter-on-quarter and 24% above estimates, driven by higher other income and lower tax rates.
- Consolidated Performance: Consolidated PAT was 10% below expectations, impacted by underperformance from HPCL, as reported earlier.
- Production Update: ONGC commenced operations of three new wells in late October, doubling crude production in the KG basin to 25 kbpd.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
