ONGC shares jump 4% after govt cuts windfall tax; brokerages see up to 53% upside

ONGC Share Price, ONGC Divided 2023: Shares of Oil and Natural Gas Corporation (ONGC) jumped 4 per cent on Thursday after the government slashed windfall tax on crude oil, exports of ATF and diesel.

The stock has also been gaining on the back of 26 per cent rise in net profit in the December quarter. The scrip opened at Rs 150 apiece on NSE, up nearly 2 per cent from the previous close of Rs 147.50. The stock hit a high Rs 153.30, gaining 4 per cent, and a low of Rs 148.40. The counter held firmly in green around noon to trade at Rs 152.20.

The state-owned explorer in the December quarter reported a standalone profit of Rs 11,045 crore, registering a growth of 26 per cent YoY, helped by higher crude and gas prices. The profit in the corresponding period of last fiscal stood at Rs 8,764 crore. The Maharatna company's standalone revenue rose by 36 per cent to Rs 38,583 crore from Rs 28,473 crore registered in the year-ago period. The rise in ONGC's revenue and profit was mainly driven by surging APM gas prices, though they were impacted by a rather subdued growth in its oil and gas business volumes.

ONGC Share Price Target 2023

Global brokerage firm CLSA has recommended a buy rating on the scrip with a price target of Rs 225 per share, implying an upside of 53 per cent from the current price. It said that the company's earnings miss out on higher exploration costs and operating expenses. The New Delhi headquartered company has the maximum dividend yield in the Asian large-cap space.

ONGC Dividend 2023

The oil and gas major has declared paying the second interim dividend of Rs 4 per equity share to its shareholders for the financial year 2022-23. The company has fixed February 24 as the record date for determining the eligibility of the shareholders for the payment of dividend.

"In terms  of  Regulation  42  of  SEBI  (Listing  Obligations  and  Disclosure  Requirements)  Regulations,  2015, Friday, the 24th February, 2023 will be the Record Date for determining eligibility of shareholders for payment of the said Interim Dividend," the company said in a regulatory filing earlier this week. ONGC is a Maharatna company. It is the largest crude oil and natural gas company in the country, contributing around 71 per cent to domestic production.

ONGC dividend 2023: Check amount and record date | ONGC share price NSE, Q3 results

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