Hold ONGC, says Rajesh Agarwal, Head - Research, Eastern Financiers.
Agarwal told CNBC-TV18, "One should hold ONGC for long term. Although I believe that would be pressure in the stock in the coming one quarter because of FPO overhang. Seeing the current market conditions we believe that the FPO would be in the range of Rs 250 and with 5% discount to retail investor it comes to Rs 238, so this price overhang is going to continue otherwise the company is on strong fundamentals quoting at a PE of around 10."
He further added, "It is one of the largest oil and gas company in India, not only in India it operates overseas also with 15 subsidiaries. I think it is one of the best bet in ones long term portfolio but in the short term there would be price concerns due to FPO overhang. If one has a long term view one can buy around Rs 230-235 levels when it comes otherwise one can hold on."
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