Angel Broking has maintained buy rating on ONGC with target price of Rs 1135 in its June 26, 2008 report. "ONGC's FY2008 performance was elevated by its subsidiaries, OVL and MRPL. We believe that domestic production is set to improve marginally over the next 2-3 years while OVL would be the prime growth driver for ONGC. Higher contribution from MRPL is expected post its refinery expansion. Subsidy sharing still haunts the upstream players. But, the government's directive of capping upstream share at Rs 45,000 crore for FY2009 is a positive for the upstream players. This translates into ONGC's share at about Rs 38,000 crore in FY2009, which is significantly higher than FY2008. We expect some revision in ONGC's natural gas prices during FY2009, which will help it improve its Earnings. The stock is currently available at 8.0x FY2010E EPS of Rs 108.1. We maintain a Buy, with a revised Target Price of Rs 1,135 (Rs 1,115)" according to Angel Broking report.
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