ONGC share price : After yesterday’s huge fall, efforts of recovery are being seen in the market today. Nifty has crossed 23700 with a jump of more than 120 points. There is maximum enthusiasm in Bank Nifty. Midcap and smallcap stocks are outperforming today. INDIA VIX is also down by more than 6.5 percent. Meanwhile, ONGC is looking bullish due to CLSA’s bullish report. This stock is among the top gainers in futures with a rise of 4 percent. Along with ONGC, OIL is also seeing a growth of 4 percent.
CLSA says production from the Eastern Offshore field is expected to increase. Domestic oil/gas production is likely to increase by 10%/20% by the end of 2025.
With increase in gas production, we may see improvement in blended gas realization. The company will get the benefit of removal of windfall tax. If crude goes above $75, you will get the benefit of removal of windfall tax. The stock is available at a discount compared to its competitors. An attractive dividend yield of 6 percent has been seen in the share. CLSA has upgraded this stock to Outperform rating with High Conviction. CLSA has given a target of Rs 360 per share for the stock.
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