ONGC can touch Rs 320-325: Agarwal

Agarwal told CNBC-TV18, “Going forward, I think ONGC is going to outperform in the oil and gas space as such because looking at the kind of assets they have not only in the domestic area but also in international markets, I think it is highly undervalued."

He further added, "But in the current scenario with high volatility in crude prices and nothing happening on the subsidy front of LPG and diesel in the very short-term, I think this overhang is going to be there in the ONGC stock but on valuation parameters trading at a P/E of 7 times FY13 earnings, which I think is quite attractive and one can even add to its positions but one has to keep a long-term horizon. For a one year time horizon we as a broking house have a target of Rs 320-325 on this. So I would suggest increase your time horizon and stay put with the stock.”