ONGC shares hit 52-week high after state-run oil explorer's Q1 revenue exceeds analysts' expectations

ONGC shares rose in early deals on Monday, bucking the overall negative trend on Dalal Street, after the state-run oil and gas explorer reported a mixed set of results for the April-June period. The ONGC stock rose by as much as Rs 3.1 — or 1.7 per cent — to Rs 180.3 apiece on BSE. 

After market hours on Friday, ONGC reported a quarterly net profit that was almost in line with Street expectations.   

ONGC Q1 results: Margin falls short of analysts' estimates  

ONGC reported a standalone net profit of Rs 10,015 crore for the first quarter of the current financial year as against a standalone net loss of Rs 247 crore for the previous three months owing to an exceptional loss of Rs 9,235 crore. 

The company's revenue declined 6.8 per cent on a quarter-on-quarter basis to Rs 33,814.3 crore for three months to June 30, according to a regulatory filing. 

ONGC's margin — a key measure of a business's profitability — stood at 42.49 per cent for the three-month period. 

According to Zee Business research, ONGC's quarterly net profit was estimated at Rs 10,045 crore, revenue at Rs 32,950 crore and margin at 54 per cent.

ONGC Q1 results: Segment revenue

While revenue from the company's offshore business declined 7.7 per cent, revenue from its onshore unit fell 4.8 per cent compared with the previous quarter.

• Offshore revenue: Rs 23,076.9 crore
• Onshore revenue: Rs 10,737.5 crore

Read more on ONGC Q1 results

Should you buy, sell or hold ONGC shares now? Here's what analysts make of ONGC after the oil explorer's earnings announcement:

Morgan Stanley maintained its 'overweight' rating on ONGC with a target price of Rs 206 apiece — suggesting an upside of more than 16 per cent from Friday's closing price. 

Last week, state-run Oil India reported a consolidated net profit of Rs 1,426.6 crore for the first quarter of the current financial year, having nearly halved from a consolidated net profit of Rs 2,805.16 crore for the year-ago period. Its revenue decreased 44.6 per cent on a year-on-year basis to Rs 6,408.8 crore for the quarter ended June 30, according to a regulatory filing.

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