The brokerage values ONGC’s standalone business and OVL at 6x Mar-26E EPS at Rs 190 and investments at Rs 55, leading to a target price of Rs 245. The stock is currently trading at 6.9x Mar-26E EPS.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

HDFC Securities Institutional Equities

ONGC – Awaiting gas production ramp-up

We maintain our Reduce rating on Oil and Natural Gas Corporation Ltd., with a revised target price of Rs 245, given:

  1. limited upside potential for ONGC’s crude price realisation in the current environment,

  2. gas price realisation unlikely to change significantly in the near term, and

  3. slower ramp-up in oil and gas production.

In Q3 FY25, reported Ebitda at Rs ~190 billion (+11% YoY, +4% QoQ) and PAT at Rs 82 billion (-17% YoY, -31% QoQ) were in line with our estimate.

Aarti Industries – Positive momentum in the energy segment

We maintain our Add recommendation on Aarti Industries Ltd., with a target price of Rs 526/share. Revenue and Ebitda are expected to increase 13/24% over FY25-28E. Profitability will be driven by-

  1. commissioning of projects worth Rs 23-25 billion over next 15 months,

  2. cost optimization measures undertaken, and

  3. volume growth across products.

With an EPS CAGR of 58% and RoE improvement of 985bps over FY25-28E, the current valuation supports the company’s growth potential. Ebitda/adjusted profit after tax were 5/9% above our estimates, due to higher-than-expected revenue and raw material cost.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

. Read more on Research Reports by NDTV Profit.The brokerages gives ‘Buy’ rating to Mahindra Lifespace, Neogen, Medplus ‘Add’ rating to Greenlam, Aarti Industries ‘Reduce’ rating to Aptus Value, Sundaram Finance and ONGC – Here’s Why  Read MoreResearch Reports 

​NDTV Profit