Buy ONGC shares, price target Rs 195: ICICI Securities

ONGC Stock Price Target for 2023: Shares of the state-owned Oil and Natural Gas Corporation (ONGC) gained more than 2 percent during the trading session on Friday. He was one of Nifty's top earners. The stock opened at Rs 145.45 apiece on NSE and gained more than 2 percent to hit a day's high of Rs 148.75.

Meanwhile, national brokerage firm in a research report on ONGC has maintained its Buy rating. The company estimates a CAGR of 19% during FY22-24E, driven by assumptions of $75/bbl of crude oil production, $7.8/mmbtu of gas production and a CAGR of 3.9 % in the group's overall production (including OVL).

The company's standalone oil and gas production (including JV's share) decreased by 6.7mt in the last 4 years, the report mentions.

While the start of production from the KG Basin asset and new assets are expected to rectify this trend between FY23 and FY27, the brokerage report remained conservative in its estimates, taking into account a CAGR of 3%. in oil and a 9% CAGR in gas production (standalone) over FY22-FY24E.

The report also highlighted key risks, including a sharp reversal in oil and gas price trends, further delays in the start of production from the KG Basin, and regulatory setbacks.

Target price of ONGC shares

ICICI Securities recommended buying ONGC shares for a target price of Rs 195.

ONGC is a public sector core company owned by the Ministry of Petroleum and Natural Gas of the Government of India. It is based in New Delhi. It is the country's largest government-owned oil and gas explorer and producer, producing about 70% of India's crude oil (equivalent to about 57% of the country's total demand) and about 84% of its natural gas. In November 2010, the Government of India conferred the status of Maharatna on ONGC.

[Disclaimer: This story was automatically generated by a computer program and was not created or edited by Journalpur Staff. Publisher:]

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