Buy ONGC; tgt Rs 1556: Hem Securities

84765 Investors following ONGC. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy ONGC; tgt Rs 1556: Hem Securities

Hem Securities has recommended buy rating on ONGC with target price of Rs 1556, in its research report dated 30th July 2008. At the current market price of Rs 990, the stock is trading at 11.31 times to its earnings and 2.70 times to its book value of Rs 366.63.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Satyam Computer, target of Rs 456: KRChoksey Hold BHEL, target of Rs 1699: KRChoksey Buy Sterlite Technologies, target of Rs 216: KRChoksey Buy ITC, target of Rs 214: India Infoline Ranbaxy Labs a market performer: Karvy ONGC BSE | NSE 28/05/12 Are Mutual Funds betting on ONGC?

Hem Securities has recommended buy rating on ONGC with target price of Rs 1556, in its research report dated 30th July 2008. "Oil and Natural Gas Corporation (ONGC) has announced results for the first quarter of FY09 and has beaten all the market expectations. Being one of the highest profitable companies in India with a 74.14 % stake of the Indian government, the company contributes 76 % of India's crude oil production and 68 % of the country's total Gas production."

"Being one of the most profitable PSU of the country, ONGC has been on the growth trajectory since its inception. The company has created immense wealth for its shareholders by far and is expected to continue the same with its ongoing capex plans and significant international and domestic operations by its subsidiaries. With the global scenario of crude oil being active, the company stands in a commendable position to benefit from the same. At the same time company's foray into uranium mining shall also add on tremendously to its existing position. The burden of the government subsidy may erode some of the profits of the company but still a more transparent and ad valorem system of subsidy and super profit tax as advocated by the industry may provide some relief. At the current market price of Rs 990, the stock is trading at 11.31 times to its earnings and 2.70 times to its book value of Rs 366.63. The stock seems extremely attractive at the current levels when compared to the industry peers. We, therefore initiate a BUY signal on the stock with a tar-get price of Rs 1556 in the medium to long term investment horizon expecting an appreciation of 57 % from the current levels, " says Hem Securities report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.