The company's total income fell 16 percent YoY to Rs 25,112.55 crore during the December quarter.
Oil and Natural Gas Corporation (ONGC) touched a 52-week low of Rs 101.10, falling 2 percent in the early trade on February 17 after the state-run company reported its third quarter numbers.
The company posted a 49.75 percent year-on-year (YoY) fall in standalone profit at Rs 4,151.63 crore for the quarter ended December 31. The state-run oil explorer posted a profit of Rs 8,262.70 crore in the same period last year.
EBITDA came at Rs 12,298.3 crore against CNBC-TV18's poll of Rs 12,734 crore, while EBITDA margin stood at 51.9 percent against CNBC-TV18's poll of 52 percent.
The company’s total income fell 16 percent YoY to Rs 25,112.55 crore during the quarter under review.
Macquarie | Rating: Outperform | Target: Rs 210 per share
The research house lower its FY20 EPS estimate by 4% on weak Q3, while largely maintaining the FY21-22 EPS estimates at Rs 29-27.
Macquarie sees deep value in the company but says it lacks catalyst in the near term and prefers GAIL & HPCL in the Indian oil & gas space.
CLSA | Rating: Buy | Target: Cut to Rs 180 from Rs 225 per share
Lower production, weak gas price and higher depletion drove 14-20% cut in FY20- 22 EPS.
The broking house reiterates “buy” as the company is the cheapest E&P stock in the world. It trades at compelling core FY21 PE of 3.6x & offers 7.7% dividend yield, it says.
The government’s indication on reduced ETF use may provide relief on share supply overhang and expect stock to more than double in three years.
Nomura | Rating: Buy | Target: Rs 175 per share
The Q3 is a miss driven by lower oil sales/realisation & higher opex.
It expects gas production/sales volumes to increase hereon and gas price realisations to likely decline moderately further in Q4.
Nomura expects a sharper reduction in gas realisations from Q1FY21, while continued stake sale by the government is a key overhang.
Jefferies | Rating: Buy | Target: Cut to Rs 155 from Rs 160 per share
The research house cut FY20 EPS estimate by 6% to factor in softer Q3. The softer lower oil prices in Q4 will lead to inventory losses at HPCL & MRPL.
The lower Brent is the key risk and any reform to gas price framework and lower ETF equity supply are catalysts.
At 0918 hours, Oil and Natural Gas Corporation was quoting at Rs 102.35, down Rs 0.90, or 0.87 percent, on the BSE.
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