Oil & Natural Gas Corporation (ONGC), a state-owned oil and gas major, specified a separate profit of Rs 11,045 crore for the Q3FY23, which embodies a growth of 26% over the Rs 8,764 crore profit it registered in the year-ago period.

However, the profit was down 14% from Rs 12,826 crore in the September quarter. The standalone income of the company flowed 36% to Rs 38,583 crore from Rs 28,473 crore in the year-ago period. On a consecutive basis, the revenue was levelled with a marginal gain of 1% from Rs 38,321 crore.

In its income release, the company mentioned that the reservations and restrictions across the worldwide supply chain outstanding to the Russia-Ukraine war had unfavourably affected the manufacture of crude oil and gas.
Created on the ONGC’s Q3 results, CLSA has a buy rating on the stock with a target price of Rs 225 per share, demonstrating an upside of 53% from the current market price.

Earnings were a slip on higher investigation costs and operating expenses. ONGC has the maximum dividend yield in the Asian big-cap space. The brokerage firm altered its amalgamated earnings estimates for FY23, FY24, and FY25 by 31%, 8%, and 5%, separately.

The revisions feature higher FY23 losses of Rs 88 billion, a cut in MRPL’s FY23 estimations by 83% to windfall tax impact, and advanced crude oil insights for FY24/25E to USD 75/75 per barrel.

The brokerage firm upholds a buy rating with a target of Rs 190 constructed on 3.5x EV/E FY24E. Prabhudas Lilladher supposes ONGC’s oil and gas construction to increase by 4% to 5% with the KG98/2 field pending on stream.