Crude oil prices are expected to remain below the investors' risk-reward profitability expectations due to international political tensions and COVID-19. Hence, we maintain our HOLD rating on the stock with revised target price of Rs. 84 using SOTP valuation. Price volatility and demand slump continues ONGC's Q1FY21 revenue stood at Rs. 13,011cr, a decline of 51.0% YoY, as the demand for transportation fuels remains muted amidst restrictions on vehicle movements during intermittent lockdowns. Volume production for crude oil declined 3.5% YoY to...

We maintain our estimates for FY21/22E. Global crude oil and gas prices to likely remain weak given weak global macros and rising supplies. ONGC stock has underperformed the broader index due to concerns on divestment of Government of India share and inefficient capital allocation policies. However, ONGC's gas volume growth will likely improve from new supplies....

Crude oil prices are expected to remain volatile amidst political tensions and COVID-19. We maintain our HOLD rating on the stock with target price of Rs. 88 using SOTP valuation. Topline impacted by oil prices and COVID-19 lockdown ONGC's Q4FY20 revenue stood at Rs. 21,456cr, a decline of 19.8% YoY, as the demand remained muted amidst nationwide lockdown. The crude oil production fell 1.4% YoY to 5.8MT. The net price realization declined to USD 49/bbl vs. USD 62/bbl in Q4FY19. In Q4FY20, the international oil prices declined after talks failed between OPEC and...

We cut our estimates for FY21/22E to factor in lower gas realization and FY20 actuals. Global crude oil and gas prices are likely to remain weak given weak global macros and rising supplies. ONGC stock has underperformed the broader index due to concerns on divestment of Government of India share and inefficient capital allocation policies. However, ONGC's gas volume growth is likely to improve from new supplies. Reiterate BUY with a Price...

Poor crude oil performance overshadows natgas improvements ONGC reported 2.4% YoY decline in standalone revenue to Rs. 26,555cr in Q1FY20 primarily due to lower crude oil volumes and realisations partly offset by improved volumes and realisations for natural gas. Net realisations for crude oil fell 7.3% YoY to USD 66.3/bbl, while crude oil production volumes declined 5.6% YoY to 5.9mt and sales volumes fell 8.9% YoY to 5.3mt. On the other hand, natural gas production volumes grew 3.7% YoY to 6.4bcm and sales volumes increased 2.1% YoY to 5.0bcm, while prices surged 20.6% YoY to USD 3.7/mmBtu. Overall revenue from offshore...