Jefferies sees 50% upside potential in ONGC shares; what should investors do?

ONGC share price target: Global brokerage Jefferies maintained a buy call on state-run crude oil and natural gas major ONGC. The brokerage in its recent note stated that ONGC's profitability is to stay elevated compared to past averages. According to the brokerage, ONGC's ramp-up in KG basin production in 3QFY25 and accretion to profitability are key triggers to monitor.

Jefferies has placed the target at Rs 390 per share for ONGC. The target implies an upside potential of 50 per cent in PSU stock from the previous close. The brokerage noted that the recent correction provides a buying opportunity for investors.

ONGC shares on Tuesday, June 11 closed at Rs 273.9, up 5.69 per cent on NSE. ONGC shares have gained over 70 per cent in the past year (June 12, 2023), against a 25 percent rally in the benchmark index Nifty 50.

ONGC Q4 results: How did ONGC fare in March quarter?

ONGC declared the highest-ever standalone net profit of Rs 40,526 crore in FY24, the company informed the exchange in a filing.

The consolidated net profit of the company is also highest at Rs 57,101 crore in FY24. The crude oil production of the company has surged by 2.4 per cent quarterly to 5.359 MMT in Q4 FY24. 

However, the standalone gross revenue of the company declined 11 per cent YoY to Rs 1,38,402 crore in FY24 from Rs 1,55,517 crore in FY23. Read more 

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