Geojit Financial maintains hold on ONGC, target price Rs 137

Geojit Financial has maintain a hold rating on Oil & Natural Gas Corp (ONGC) in the long term with a target price of Rs 137. Shares of ONGC ended 1.71% lower at Rs 126.60 on Friday while the BSE sensex was 334.44 down at 40,445.15.

Company Financials



For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 101554.26 crore, down -7.27 % from last quarter sales of Rs 109514.82 crore and down -10.50% from last year same quarter sales of Rs 113471.24 crore. The company has reported net profit after tax of Rs 5485.97 crore in latest quarter.

The company’s top management includes Dr.Alka Mittal, Dr.Santrupt B Misra, Mr.Amar Nath, Mr.Amitava Bhattacharyya, Mr.Deepak Sethi, Mr.Navin Chandra Pandey, Mr.Rajesh Kakkar, Mr.Rajesh Kumar Srivastava, Mr.Rajiv Bansal, Mr.Sanjay Kumar Moitra, Mr.Shashi Shanker, Mr.Subhash Kumar, Mr.Sumit Bose, Mr.Vivek Mallya, Mrs.Ganga Murthy. Company has S A R C & Associates as its auditors. As on 30-09-2019, the company has a total of 12,580,279,206 shares outstanding.

Investment Rationale

The brokerage cited lower than expected September quarter results for the rating. Crude oil prices are expected to recover to some extent in the second half of the year; however, natural gas sales will remain subdued owing to reduction in prices. The government is in deliberations over lifting price restrictions on locally produced natural gas, which may take time and hence the brokerage remain cautious on ONGC’s nearterm prospects.