Jefferies has reiterated its “Buy” rating on ONGC stock but has revised the target price to ₹385 per share from ₹410 previously. Despite the downward adjustment, the brokerage sees a significant upside potential of 56% from the current market price (CMP) of ₹246.10.
Key highlights from Jefferies’ analysis:
- Stock correction overdone: The ONGC stock has corrected by 30% over the past three months, which Jefferies believes is excessive and does not reflect the company’s growth prospects.
- Earnings boost from HPCL: Consolidated EPS is expected to benefit from an improved earnings outlook for HPCL, a key subsidiary.
- Regulatory tailwinds: Recent regulatory actions are seen as positive, contributing to improved profitability for ONGC.
- KG Basin production ramp-up: The expected ramp-up in KG Basin production in Q4FY25/Q1FY26 is highlighted as a critical growth trigger for the stock.
Despite near-term challenges, Jefferies remains optimistic about ONGC’s long-term potential, driven by regulatory support and production growth.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
