Karvy research has maintained buy rating on ONGC with target price of Rs 1500, in its June 27, 2008 report. "ONGC's Q4FY08 results have continued the trend of showing a sharp spike in other expenditure during the last quarter of the financial year. Other expenditure shot up by 72.4% YoY and 106.6% QoQ to Rs 38,342 million, which was much higher than our expectation of Rs 23,351 million. The subsidy burden for ONGC in FY2009 has been decided at Rs 360 billion, which is 70% higher than that in FY2008. We are not revising our estimates for FY2009E and FY2010E as of now as we believe that the subsidy burden figure will continue to be erratic despite the recent cap announced by the government. But we expect higher subsidy burden to be largely offset by the recent depreciation in rupee as well as higher crude oil price. We maintain our Buy rating on the stock with target price of Rs 1,500" according to Karvy report.

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