ONGC shares jump 5% as CLSA upgrades stock, raises target price

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© PTI ONGC shares jump 5% as CLSA upgrades stock, raises target price

Shares of Oil and Natural Gas Corporation (ONGC) jumped 5 percent in early trade on BSE on February 16 after the global brokerage firm CLSA upgraded the stock.

CLSA upgraded ONGC to ‘outperform’ from ‘sell’ and raised the target price to Rs 105 from Rs 90.

As reported by CNBC-TV18, CLSA has raised the company’s FY21 EPS by Rs 10-185 on stronger crude in Q4 & FY22-23. It said ONGC’s standalone Q3 EBITDA was 13 percent ahead of its estimates.

“We expect the formula-based domestic gas price to settle higher. The company is pricing in $56/bbl versus spot price of $62,” said CLSA.

On February 13, ONGC said its standalone net profit in the October-December quarter stood at Rs 1,378 crore, 67.4 percent lower than Rs 4,226 crore net profit in the same quarter of the previous year.

Read more: ONGC Q3 profit falls 67% on drop in oil, gas prices

The numbers did not disappoint the market as the stock closed in the green in the next trading session.

Shares of ONGC traded 4.37 percent higher at Rs 102.70 on BSE at 0950 hours.