Buy ONGC around Rs 255- 260, says SP Tulsian

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Buy ONGC around Rs 255- 260, says SP Tulsian

Buy ONGC around Rs 255- 260, says SP Tulsian, sptulsian.com.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about ONGC See messages about ONGC

Buy ONGC around Rs 255- 260, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "ONGC, I don't think that this quarterly results have any meaning because finally that is how I look at it that the government will only be leaving Rs 25,000- 26,000 crore with the company and that will give them an EPS of close to about Rs 28-29. So, whatever excess they are going to see, will going to take away as a marketing subsidy or under recovery and in fact that is what it has been happening. So, I won't be too excited to take a call on a quarterly basis on the results."

He further added, "I don't think that ONGC can really fall below Rs 250 because now you don't have that FPO fear. On the upside I don't think that it has the potential to move past Rs 300. It depends on the market conditions, taking that market is likely to remain positive which in fact has given little more upside whether you talk of Reliance Industries or ONGC. So, one can safely take a broad range of Rs 250 to Rs 300."

"If you take an overall call, the three upstream companies or maybe the three companies which are bearing the subsidy burden that is ONGC, Oil India , GAIL in the ratio of 80:11:7 and three downstream companies, in think in case of all the companies, the bottom line is practically pegged. The government just makes an adjustment though they try to do it on a quarterly basis but the Q4 ultimately remain the deciding trend. Whatever adjustment has to happen will straightaway come as a grant by the government or as a subsidy contribution by the upstream companies. So I am not too nervous or too excited about the ONGC stock. Probably the bearish market can bring it down to Rs 255-260 where one can look to enter and one can look to sell it above Rs 285-290."