Buy ONGC, target price Rs 146: Edelweiss

Edelweiss has buy call on Oil And Natural Gas Corporation with a target price of Rs 146. The current market price of Oil And Natural Gas Corporation Ltd. is Rs 120.8. Time period given by analyst is one year when Oil And Natural Gas Corporation Ltd. price can reach defined target.

Oil And Natural Gas Corporation Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 152410.08 Crore) operating in Gas & Petroleum sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 118206.16 Crore, up 15.42 % from last quarter Total Income of Rs 102416.51 Crore and up 9.44 % from last year same quarter Total Income of Rs 108014.32 Crore. Company reported net profit after tax of Rs 10267.26 Crore in latest quarter.


Investment Rationale
The brokerage envisages start of large KG-98/2 production by FY22, which is eligible for higher deep-water pricing. It maintains ‘BUY/SN’ with revised TP of INR146 (earlier: INR121) as it rolls forward to FY23E.

Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of March 31, 2021, while FIIs held 18.2 per cent, DIIs 16.6 per cent and public and others 13.7 per cent.