ONGC gains 3% on better June quarter numbers; ICICI Securities maintains buy

The company’s revenues rose 14 percent at Rs 27,212 crore against Rs 23,970 crore on a quarter on quarter basis.

Shares of Oil and Natural Gas Corporation (ONGC) gained 3 percent intraday Friday as company posted better numbers in the quarter ended June 2018.

The company has reported a rise of 4 percent in net profit for the June quarter at Rs 6,143 crore against Rs 5,915.2 crore during the previous quarter.

The company’s revenues rose 14 percent at Rs 27,212 crore against Rs 23,970 crore on a quarter on quarter basis.

At the operating level, the company reported a jump of 29 percent in its earnings before interest, taxes, depreciation and amortisation at Rs 14,695 crore against Rs 11,382 crore.

The operating margin has been reported at 54 percent against 47.4 percent QoQ.

Brokerage: ICICI Securities | Rating: Buy | Target: Rs 227

Research house ICICI Securities has maintained buy call on ONGC and cut target to Rs 227 from Rs 234 per share.

ICICI Securities cut volume and other income estimates and raised cost estimates. It also cut FY19 EPS estimate by 15 percent.

Share price factors in the long-term oil price realisation of USD45/bbl, it added.

Brokerage: Nomura | Rating: Neutral | Target: Rs 185

Nomura has maintained neutral call on ONGC with a target at Rs 185 per share.

According to Nomura, the operational volumes were weak, particularly for oil and gas production was relatively weak in Q1.

The near-term focus will be on stemming the decline in oil production, while continue to prefer OMCs over upstream, it added.

At 09:49 hrs Oil and Natural Gas Corporation was quoting at Rs 168.10, up Rs 2.10, or 1.27 percent on the BSE.

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