Buy ONGC on dips: Gaurang Shah

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services in an interview with ET Now talks about ONGC.

What is your first pick?

The first stock that we have chosen in fact both the stocks that we are going to speak about today are from the oil and gas pack and both are tilted towards the gas vertical more than the oil side of it of course the explosion activities that has helped companies like ONGC to a great extent.

With the kind of investments that ONGC plans to do with its subsidiary OVL on the overseas market. We feel that the stock is poised for a huge amount of upside going forward from here on.

Discoveries borne onshore and offshore has yielded good returns in terms of revenue for ONGC and the fact that the government planning to roll out at least 25000 crore worth of distribution pipeline as far as gas distribution is concerned gives you an idea and possibly insight as to where the upside lies both in terms of exploration activity as far as ONGC is concerned so from the current CMP one can start accumulating on gradual dips.