Buy ONGC at Rs 250: Religare Capital

Buy ONGC at Rs 250, says Manoj Singla, MD & Co- Head Product, Religare Capital Markets Ltd.

Singla told CNBC-TV18, "If a call here is that we expect oil to come down clearly we are not positive on Cairn because if oil comes down that will be negative for Cairn at the margin. ONGC is a mixed pack because if oil comes down they will benefit in terms of the subsidy side. At Rs 250-260 the stock is quite cheap. So at the margin, I would be buying ONGC at Rs 250."
ONGC's trailing 12-month (TTM) EPS was at Rs 22.12 per share. (Sep, 2011). The stock's price-to-earnings (P/E) ratio was 12.48. The latest book value of the company is Rs 113.97 per share. At current value, the price-to-book value of the company was 2.42. The dividend yield of the company was 6.34%.