Buy ONGC, target price Rs 150: Motilal Oswal

Motilal Oswal has buy call on Oil And Natural Gas Corporation with a target price of Rs 150. The current market price of Oil And Natural Gas Corporation is Rs 123.4. 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 152095.58 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
ONGC is trading at 2.5x FY23E EV/EBITDA and 4.4x FY23E P/E. It values the company at 10x FY23E adjusted EPS of INR11.7 and add value of investments to arrive at the TP of INR150.

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of March 31, 2021, while FIIs held 7.7 per cent, DIIs 17.5 per cent and public and others 14.4 per cent.