Buy Oil and Natural Gas Corporation; target of Rs 288 Prabhudas Lilladher

Prabhudas Lilladher is bullish on Oil and Natural Gas Corporation has recommended buy rating on the stock with a target price of Rs 288 in its research report dated February 04, 2024.

Broker Research

February 04, 2025 / 14:40 IST

buy

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Oil and Natural Gas Corporation

Oil and Natural Gas Corporation’s (ONGC) operating profit stood at Rs189.7bn (up 4% QoQ, PLe: Rs181.3bn, BBGe: Rs180bn). PAT declined 31.2%QoQ to Rs82.4bn (PLe: Rs98bn, BBGe: Rs97bn) led by higher depreciation and lower other income. Oil and gas production remained flat YoY. Current production from KG Basin stands at 25,000bopd of oil and 3mmscmd of gas. Production guidance for FY25/26/27E stands at 42.4/44.5/45.6mmtoe of oil and gas. Going ahead, we build in 4% and 6% CAGR volume growth in oil and gas production, respectively, over FY25-FY27E.

Outlook

The stock is currently trading at 5.7/5.6x FY26/27 EPS. We maintain ‘BUY’ rating with a TP of Rs288, valuing the standalone business at 8x FY27 adj EPS and adding the value of investments.

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