ONGC (Oil and Natural Gas Corporation) shares saw a 3% surge after brokerage CLSA reaffirmed its ‘Outperform’ rating, setting a target price of Rs 360. As of 10:36 AM, the shares were trading 2.89% higher at Rs 256.15.
CLSA highlighted ONGC as a high-conviction pick in the energy sector, bolstered by robust oil and gas sales volumes. Despite ONGC’s Q3 PAT missing estimates by 11% due to higher recouped costs, its standalone Q3 EBITDA exceeded expectations by 6%, driven by strong production growth.
ONGC’s management expressed confidence in meeting its production growth targets, particularly from new fields. CLSA pointed out that the increasing share of new well gas in ONGC’s output, coupled with a production enhancement contract with BP, will fuel future growth.
ONGC shares opened today at 252.40, with a high of 257.50 and a low of 252.00. The stock has seen significant fluctuations, with a 52-week high of 345.00 and a 52-week low of 223.00.
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