ONGC shares have jumped 13 percent in the last 5 sessions. This stock has given a return of 76 per cent in the last one year. This stock has given 40 per cent profit in the last six months.
New Delhi. Shares of Oil and Natural Gas Corporation Limited (ONGC Share) rose by about six percent on Tuesday, June 11, and closed at Rs 273.90 on NSE. On June 4, the day of the Lok Sabha election results, this stock fell by 9 percent. But, with the re-formation of the NDA government, this stock has now recovered. Foreign brokerage firm Jefferies has maintained its ‘buy’ rating on ONGC shares. The brokerage says that the price of this share can increase by 50 percent in the coming days.
Jefferies says that the policies at the central government level are expected to continue as before, due to which the profits of government companies in the oil sector can remain at a high level. According to the brokerage, the recent decline in the shares now seems to be stopping and this is a good opportunity for investors to include this stock in their portfolio. Jefferies has set the target price of ONGC shares at Rs 390 per share.
Profits will increase
Jefferies said in its note that ONGC will increase its production from the KG basin in the current financial year. This could be a trigger point for the stock. Jefferies is confident that ONGC’s profit will remain higher than its previous average. Earlier, in a note released on April 15, Jefferies had predicted a reduction in net debt and an increase in profit between FY 2024 and 2026.
Stock Performance
ONGC’s stock has gained 13 per cent in the last five trading sessions. Similarly, in the last six months, this stock has given 40 per cent profit to investors. So far in the year 2024, this government stock has gained 33 per cent. At the same time, ONGC stock has given 76 per cent return to investors in one year.
Profit increased by 78 percent
In the fourth quarter of the financial year 2024, the profit of Oil and Natural Gas Corporation increased by 78 percent year-on-year to ₹ 11,526 crore. The consolidated net profit of the company was ₹ 6,478 crore in the same quarter a year ago. Income also increased by 1.64 percent year-on-year to ₹ 1.66 lakh crore. It was ₹ 1.64 lakh crore in the same quarter a year ago.
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FIRST PUBLISHED : June 12, 2024, 07:15 IST