Antique upgrades ONGC to buy, sees growth recovery

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26 Aug, 2025 12:21

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Antique has upgraded ONGC to buy with a target price of Rs 375 per share, indicating a 23 percent upside. Its earnings per share (EPS) is at Rs 31-35 per share based on new subsidy mechanism.

According to the brokerage, acceptance of the new formula for FY16, short-term upside in Brent and return of Ratna/R-Series block are the near-term triggers for the stock. However, a sharp fall in oil price may be a potential risk.

As per estimates, ONGC's earnings are likely to recover a sharp 74 percent on sequential basis and 40 percent annually.

"With the Centre already indicating a Q1 subsidy mechanism on a formula-based sharing of no burden till USD60 per barrel of the Indian crude basket, 85 percent of incremental oil prices above USD60 per bbl till USD100/bbl and 90 percent of incremental oil prices above USD100/bbl, we expect the same to be codified for the full year, if oil prices remain rangebound," it says in a report.

At 09:59 hrs Oil and Natural Gas Corporation was quoting at Rs 306.45, up Rs 0.95, or 0.31 percent on the BSE.

Posted by Nasrin Sultana