ONGC Share Price Target 2025: PSU Stock Crack 8% Amid Crude Oil Price Drop, Should You Buy Or Sell? – News18
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ONGC shares fell 8% intraday as crude oil prices dropped after OPEC+ announced a production hike.
ONGC shares crack 8% on Friday.
ONGC Share Price: Shares of ONGC (Oil and Natural Gas Corporation) cracked 8 per cent during intraday on Friday. This stark drop came after a sharp decline in crude oil prices overnight. ONGC scrip was trading at Rs 225.25 apiece with a fall of -7.44 per cent around 3:00 PM It opened at Rs 240.95, against the previous day close at Rs 243.35 apiece.
Both Brent and WTI crude dropped nearly 7% on Thursday. While WTI fell towards the $66 per barrel mark, Brent prices fell to $70 per barrel. It was triggered by higher than anticipated production hike announcement by the Organisation of Petroleum Exporting Countries (OPEC+). It is in addition to macrolevel uncertainty fueled by Donald Trump’s tariff push, causing fear of looming recession and inflation spike.
The falling prices of crude oil will negatively impact the margin of oil companies in India. ONGC is an oil exploration and production company which earns by selling crude oil they extract. When crude oil prices fall, they earn less for the same quantity of oil. But their costs (like exploration, drilling, etc.) stay the same, so their profit margins shrink.
ONGC Share Price Target 2025
Jefferies in its report projected 14% EPS CAGR over FY25-27 for ONGC on the back of production growth and better pricing in gas. The brokerage has maintained BUY rating with price target of Rs 375.
ONGC is seen as undervalued with strong cash flow visibility and improving volumes, as by Jefferies.
ONGC is trading at 5.1x FY25E P/E and 0.6x P/BV – Jefferies considered cheap.
Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
