ONGC Q1 net profit drops 15%: Buy, sell or hold? Heres what brokerage suggests
ONGC Share Price Target: The surge in the share price comes even as the state-owned company has reported a 15 per cent drop in its June quarter net profit on higher exploration cost write-off.
ONGC Share Price Target: Shares of Oil and Natural Gas Corporation Limited (ONGC) - an Indian central public sector undertaking (PSU) under the ownership of the Ministry of Petroleum and Natural Gas - surged around 4 per cent as markets rebounded on Tuesday. While the Sensex jumped 1,092.68 points to 79,852.08 in early trade; Nifty rallied 327 points to 24,382.60.
The shares of ONGC started the session in green and opened at Rs 316.30 on the BSE. The counter surged further to touch the high of Rs 322.50 - a gain of 3.98 per cent on the BSE against the previous close of Rs 310.15.
The surge in the share price comes even as the state-owned company has reported a 15 per cent drop in its June quarter net profit on higher exploration cost write-off.
ONGC Share Price Target
However, global brokerage firm Jefferies has maintained a 'buy' on the shares of ONGC with a target of Rs 390.
ONGC Share Price History
The counter has given a multibagger return of around 131 per cent in two years and over 81 per cent in one year. So far this year, the counter has already gained over 52.69 per cent.
ONGC Quarter Results
Its net profit of Rs 8,938.10 crore in April-June - the first quarter of the current 2024-25 fiscal year - compared to Rs 10,526.78 crore earnings in the same period of last year, according to a stock exchange filing by the company.
The profit was also lower sequentially compared to Rs 9,869.37 crore in the January-March quarter.
India's largest crude oil and natural gas producer wrote off Rs 1,669.73 crore cost incurred in the unsuccessful survey and drilling of wells to find oil and gas. This compared to Rs 1,015.81 crore in April-June 2023.
Its revenue from operations rose to Rs 35,266.38 crore in the first quarter from Rs 33,814.33 crore a year back.
The higher write-off negated gains from the oil price increase
With PTI inputs
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