CLSA upbeat on ONGC, sees 50% upside

ONGC share price: Global brokerage firm CLSA has initiated a buy coverage for ONGC as it sees potential even on depressed multiples. It said that the government-owned company has the potential for 65 per cent base case total stock return vs sub 10 per cent downside risk. Also, the identify option value equals to 90 per cent of current stock price.

The report said that high confidence in the predictability of the company's earnings will be a big positive. It further said that the crude and gas pricing will stabilise in 2023 after uncertainties faced in H2.

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Domestic brokerage firm ICICI Securities has tagged Buy rating on ONGC shares for a price target of Rs 195. It said that the start of production from the KG basin asset and new assets will drive production in 2023.

Meanwhile, shares of ONGC traded with nearly 1.50 per cent gains on NSE, quoting Rs 149.50, at 1 PM.

ONGC is a central public sector undertaking under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. It is the largest government-owned-oil and gas explorer and producer in the country, and produces around 70 per cent of India's crude oil (equivalent to around 57 per cent of the country's total demand) and around 84 per cent of its natural gas. 

In November 2010, the Government of India conferred the Maharatna status to ONGC.

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