Upstream companies were out of flavor despite realising market price for crude oil, mainly on account of the subsidy sharing with OMCs. We expect oil prices to remain muted owing to the robust supply from US Shale. This is despite production cuts from OPEC and non-OPEC countries. Thus, there is no concern over the subsidy sharing. ONGC will generate OCF yield of almost 28% and divided yield of ~6.3% over FY20/21E. The current valuations are contextually lower at 5.5x FY21 PER (ex-OVL and other investments). Our TP is Rs 184/sh (8x Jun-21E standalone core EPS (adj. for dividend income), + OVL EPS and Rs 32 from other investments) ONGCs 1Q performance was muted owing to (1) Low oil production, (2) Fall in oil realisation, and (3) Adverse impact of Ind AS116. However, we maintain our BUY as we expect re-rating of the stock given that falling oil prices have allayed fears of subsidy. Adjusting for its investments (OVL+ other), the stock is trading at 5.5x Jun-21E standalone EPS. This indicates strong pessimism.