Hold ONGC; target Rs 360: Firstcall Research

Firstcall Research's report on Oil and Natural Gas Corporation (ONGC)

"ONGC's net profit falls to Rs.33887.10 million against Rs.56443.80 million in the corresponding quarter ending of previous year, a decrease of 39.96 percent. Revenue for the quarter rose 12.87 percent to Rs.218298.60 million from Rs.193399.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.3.96 a share during the quarter, registering 39.96 percent decrease over previous year period. Profit before interest, depreciation and tax is Rs.72400.70 millions as against Rs.90113.90 millions in the corresponding period of the previous year.' "Outlook and Conclusion: At the current market price of Rs.326.85, the stock P/E ratio is at 12.30 x FY14E and 11.55 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.26.58 and Rs.28.31 respectively. Net Sales of the company is expected to grow at a CAGR of 8 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 6.25 x for FY14E and 5.83 x for FY15E. Price to Book Value of the stock is expected to be at 1.90 x and 1.66 x respectively for FY14E and FY15E. We recommend 'HOLD' in this particular scrip with a target price of Rs 360 for Medium to Long term investment," says Firstcall Research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

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