ONGC Q4 Results Review - Strong Guidance On Production: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Oil and Natural Gas Corporation Ltd.'s Q4 FY24 headline numbers were below consensus. Ebitda/profit after tax came in at -7%/-8% mainly due to- sales-to-production ratio being lower mostly in gas segment and higher than expected depletion of reserves.The company guided significant growth in oil/gas production of ~22 metric million tonne/ 25 billion cubic metre in FY27E. Most of the incremental oil production from KG-98/2 field, currently at 12 thousand barrels per day will touch 40/45 KBPD by the end of FY25E. Incremental gas production, on the other hand, will touch ~5 bcm (3.6 bcm ramp up at 98/2 +1 bcm addition from new fields +0.3 bcm from the stranded gas field) over next three years. By FY26 end, ~25% of gas production would be eligible for 20% higher gas price which is linked to ‘Indian Crude basket’ and 12% slope. We believe that recent reforms in crude and gas pricing have led to significant improvement in ONGC's profitability. Accordingly, we resume coverage with ‘Accumulate’ rating and SoTP-based target price of Rs 318. The stock also offers 4-5% dividend yield. Any sharp rise/fall in crude price and adverse regulations will be key risks to our call..Click on the attachment to read the full report:.ONGC Q4 Results Review - Volume Outlook Robust; Execution Will Be Key: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ONGC Q4 Results Review - Strong Guidance On Production: Dolat Capital

ONGC is well placed to benefit from tighter crude oil market and Government's rationale for allowing it to improve net realization to $75/bbl.

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