Please refer to important disclosures at the end of this report
Oil and Natural Gas Corporation (O N G C) Limited is a global energ
company. The Company is engaged in the exploration, development and
production of crude oil and natural gas. Lower expenses were a positive surprise
for ONGC in 1QFY17, some of which is likely to continue. Regular kerosene,
LPG price hikes could also benefit upstream companies, particularly if continued
beyond 10 months. Crude price recovery remains a catalyst. ONGC's
management has also guided for the growth in both crude and gas production
going forward, with fairly aggressive targets for 2HFY17. It seems that the
company’s subsidy burden to go down substantially with regular price hike in
SKO and implementation of DBTL for SKO as well. Also, the company has raised
its oil production guidance to 26.2mmt from earlier 25.7mmt while kept gas
production guidance unchanged at 23.8bcm. ONGC’s subsidy burden remained
nil for the fourth quarter in a row, with the government bearing the entire burden
on kerosene & LPG. The company has been maintaining a healthy dividend
payout of 39.90% (Div. Yield: 3.11%). Hence Buy.
CMP `276
Stock Info
Beta 1.0
Bloomberg Code
Shareholding Pattern (%)
Promoters 68.9
MF / Banks / Indian Fls 11.9
FII / NRIs / OCBs 5.4
Indian Public / Others 13.8
Abs. (%) 3m 1yr 3yr
Sensex (6.6) 2.7 28.9
O N G C 18.3 20.5 2.1
Reuters Code ONGC.BO
BSE Sensex 26,305
Nifty 8,108
Face Value (
Oil & Gas
Market Cap (
cr) 2,35,789
52 Week High / Low 297/188
Avg. Daily Volume 5,89,846
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Others | Oil & Gas
November 16, 2016
O N G C | Oil & Gas
November 16, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)