Buy Oil And Natural Gas Corporation, target price Rs 185: ICICI Securities

ICICI Securities has buy call on Oil And Natural Gas Corporation with a target price of Rs 185. The current market price of Oil And Natural Gas Corporation is Rs 137.35. Time period given by analyst is one year when Oil And Natural Gas Corporation Ltd. price can reach defined target.

Oil And Natural Gas Corporation Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 173167.54 Crore) operating in Gas & Petroleum sector.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 184148.90 Crore, up 16.07 % from last quarter Total Income of Rs 158648.42 Crore and up 68.48 % from last year same quarter Total Income of Rs 109301.82 Crore. Company reported net profit after tax of Rs 7545.69 Crore in latest quarter.

Investment Rationale
The brokerage believes valuations of 2.5x FY24E consol EPS and 2.2x EV/EBITDA ignore i) growth in output is bound to come via starting up of KG basin asset from FY23E end, ii) oil & gas realisations, even at capped levels, are well above the historical levels and iii) performance of subsidiaries HPCL, MRPL & OVL will help provide a natural hedge to domestic upstream. Re-initiating coverage with BUY and our SoTP-based TP of Rs185/sh.