ETMarkets.comJM Financial has buy call on Oil And Natural Gas Corporation with a target price of Rs 200. The current market price of Oil And Natural Gas Corporation is Rs 159.
Oil And Natural Gas Corporation, incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 200026.44 Crore) operating in Gas & Petroleum sector.
Oil And Natural Gas Corporation key Products/Revenue Segments include Oil Crude, Gas Natural, Naphtha, Ethane, Propane, C2/C3 (Ethane/Propane), Butane, Other Operating Revenue, Aviation Turbine Fuel (ATF), HSD, Superior Kerosene Oil, LSHS, Mineral Turpentine Oil (MTO), Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 166728.80 Crore, down -2.52 % from last quarter Total Income of Rs 171041.32 Crore and up 5.09 % from last year same quarter Total Income of Rs 158648.42 Crore. Company has reported net profit after tax of Rs 7224.53 Crore in latest quarter.
The company’s top management includes Mrs.Pomila Jaspal, Dr.Prabhaskar Rai, Mrs.Reena Jaitly, Mr.Manish Pareek, Mr.V Ajit Kumar Raju, Mr.Syamchand Ghosh, Mr.G Srinivas, Mr.Pankaj Kumar, Mr.Anurag Sharma, Mr.Om Prakash Singh, Mr.Rajesh Kumar Srivastava, Dr.Alka Mittal, Dr.Madhav Singh. Company has R Gopal & Associates as its auditors. As on 31-03-2023, the company has a total of 1,258 Crore shares outstanding.
Investment Rationale
OVL’s production has recovered gradually; further, PAT was higher on reversal of impairment charge. Hence, final dividend was limited at only INR 0.5/share, taking the total FY23 dividend to only INR 11.25/share or 40% payout (vs. FY22 dividend of INR10.5/share or 33% payout).
The brokerage has cut its FY24 PAT estimate by 5% and FY25 PAT estimate by 15% to factor in higher continued provision for SC/GST on royalty, higher drywell write-off, and weak FY23 results. Hence, it has further slashed its TP to INR 200/share (from INR220/share).
Nonetheless, the buy has been maintained as the stock is a strong dividend play (of 6-8%) and as CMP
is discounting only ~USD 55-60/bbl of net crude realisation.
Promoter/FII Holdings
Promoters held 58.89 per cent stake in the company as of 31-Mar-2023, while FIIs owned 7.97 per cent, DIIs 19.86 per cent.
Oil And Natural Gas Corporation, incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 200026.44 Crore) operating in Gas & Petroleum sector.
Oil And Natural Gas Corporation key Products/Revenue Segments include Oil Crude, Gas Natural, Naphtha, Ethane, Propane, C2/C3 (Ethane/Propane), Butane, Other Operating Revenue, Aviation Turbine Fuel (ATF), HSD, Superior Kerosene Oil, LSHS, Mineral Turpentine Oil (MTO), Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 166728.80 Crore, down -2.52 % from last quarter Total Income of Rs 171041.32 Crore and up 5.09 % from last year same quarter Total Income of Rs 158648.42 Crore. Company has reported net profit after tax of Rs 7224.53 Crore in latest quarter.
The company’s top management includes Mrs.Pomila Jaspal, Dr.Prabhaskar Rai, Mrs.Reena Jaitly, Mr.Manish Pareek, Mr.V Ajit Kumar Raju, Mr.Syamchand Ghosh, Mr.G Srinivas, Mr.Pankaj Kumar, Mr.Anurag Sharma, Mr.Om Prakash Singh, Mr.Rajesh Kumar Srivastava, Dr.Alka Mittal, Dr.Madhav Singh. Company has R Gopal & Associates as its auditors. As on 31-03-2023, the company has a total of 1,258 Crore shares outstanding.
Investment Rationale
OVL’s production has recovered gradually; further, PAT was higher on reversal of impairment charge. Hence, final dividend was limited at only INR 0.5/share, taking the total FY23 dividend to only INR 11.25/share or 40% payout (vs. FY22 dividend of INR10.5/share or 33% payout).
The brokerage has cut its FY24 PAT estimate by 5% and FY25 PAT estimate by 15% to factor in higher continued provision for SC/GST on royalty, higher drywell write-off, and weak FY23 results. Hence, it has further slashed its TP to INR 200/share (from INR220/share).
Nonetheless, the buy has been maintained as the stock is a strong dividend play (of 6-8%) and as CMP
is discounting only ~USD 55-60/bbl of net crude realisation.
Promoter/FII Holdings
Promoters held 58.89 per cent stake in the company as of 31-Mar-2023, while FIIs owned 7.97 per cent, DIIs 19.86 per cent.
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