Shares of Oil and Natural Gas Corporation (ONGC) surged 2.51% to ₹248.25 in Friday’s trade, gaining ₹6.08 from the previous close of ₹242.17. The stock moved in a range of ₹243.26 to ₹249.33 during early hours, driven by positive sentiment following Jefferies’ reaffirmation of a ‘Buy’ rating and a robust target price of ₹375.
Jefferies, after a recent US roadshow, noted ONGC’s management remains confident about achieving a 10–12% compound annual growth rate (CAGR) in production between FY26–30. This will largely be driven by expansion in its flagship Mumbai High field. The brokerage added that BP’s 40% production growth in a similar geological field further boosts confidence in ONGC’s trajectory.
The report also pointed out that reforms in India’s gas and crude pricing structure will likely support profitability. Jefferies estimates a 14% earnings per share (EPS) CAGR for FY25–27 and believes ONGC’s current valuation prices in crude at a conservative US$55 per barrel, indicating favourable risk-reward.
ONGC currently has a market capitalization of ₹3.12 trillion, a P/E ratio of 7.83, and a dividend yield of 5.45%.
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