This government can share the wealth! The brokerage firm is confident of a storm surge.

New Delhi. On Tuesday, June 11, shares of Oil and Natural Gas Corporation Limited (ONGC share) rose nearly six percent to close at Rs 273.90 on the NSE. The stock fell as much as 9 percent on June 4, the day of the Lok Sabha election results. But, with the re-formation of the NDA government, this part has now been restored. Foreign brokerage firm Jefferies has maintained its ‘buy’ rating on ONGC shares. The brokerage says that the share price may increase by 50% in the coming days.

Jefferies says policies at the central government level are expected to continue as before, which could lead to higher profits for state-owned companies in the oil sector. According to the brokerage, the recent fall in the shares seems to have stopped now and this is a good opportunity for investors to add this stock to their portfolio. Jefferies has priced ONGC shares at Rs 390 per share.

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Profits will increase
Jefferies said in its note that ONGC will increase its production from the KG basin in the current financial year. This could be a trigger point for the stock. Jefferies is confident that ONGC’s profitability will remain above its historical average. Earlier, in a note issued on April 15, Jefferies forecast a decline in net debt and a rise in profits from fiscal 2024 to 2026.

Stock performance
Shares of ONGC have gained 13 percent in the last five trading sessions. Similarly, in the last six months, this stock has given 40% profit to the investors. So far in the year 2024, this government share has increased to 33 percent. Along with this, ONGC shares have given investors 76% return in one year.

Profits increased by 78%.
In the fourth quarter of FY24, the oil and natural gas corporation’s profit rose 78% year-on-year to ₹ 11,526 crore. In the same quarter a year ago, the company’s consolidated net profit was ₹ 6,478 crore. Revenue also increased by 1.64 percent to Rs 1.66 lakh crore on a year-on-year basis. It was ₹1.64 lakh crore in the same quarter a year ago.

(Disclaimer: The stock mentioned here is based on the advice of the brokerage houses. If you want to invest in any of them, consult a certified investment advisor first. News 18 of any profit or loss you make. will not be responsible).

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