Global brokerage Macquarie has reiterated its positive stance on the Oil & Natural Gas Corp. stock but reduced the target price marginally. The 12-month price target has been cut to Rs 300 from Rs 310 with a 'Outperform' rating. The new target implies a return potential of 14% over the previous close.
Analysts said the current oil price volatility is actually favourable for the company. Sustained production growth will be crucial for ONGC's re‑rating after a year of stability with the phase of de‑growth coming to an end.
Macquarie expects a significant production ramp‑up in 2026.
The brokerage has reduced its FY26 and FY27 EPS estimates by 24% and 15.4%, respectively, due to a lower‑than‑expected production outlook. Despite this, it highlighted ONGC's attractive dividend yield of around 6%, with potential upside.
ONGC Share Price Movement
Shares of ONGC was flat as of Thursday afternoon, compared to a 0.6% slide in the benchmark Nifty 50. The stock is down 4% so far this month and 12% year-to-date.
Nineteen out of the 31 analysts tracking ONGC have a 'buy' rating on the stock, six recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 286, which implies a potential upside of 6%.
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