PSU Stocks Surge by 6% on Tuesday, June 11, 2024 📈
The shares of Oil and Natural Gas Corporation Limited (ONGC) saw a sharp increase of around 6% on Tuesday, closing at Rs 273.90 on the NSE. After a 9% drop on the day of Lok Sabha election results (June 4, 2024), the stock has rallied once again following the formation of the NDA government at the Centre under the leadership of Prime Minister Narendra Modi.
Foreign brokerage firm Jefferies has maintained a ‘Buy’ rating on ONGC shares, predicting a potential 50% increase in the stock price in the coming days. According to Jefferies, the government’s policies in the oil sector are unlikely to see major changes and state-owned companies are expected to continue generating high profits.
Jefferies has set a target price of Rs 390 per share for ONGC. On Friday, June 14, 2024, the stock was trading at Rs 276 with a marginal 0.31% decline.
Positive Outlook for ONGC Shares 🚀
In a press release, Jefferies stated that ONGC is expected to increase its production in the current fiscal year, which could serve as a trigger point for the stock. The firm believes that ONGC’s profits will remain higher than the previous average, making it a good opportunity for investors to add these shares to their portfolios.
ONGC’s stock has witnessed a 13% increase in the last five trading sessions and has delivered a 40% return to investors in the past six months. Government company stocks have also seen a 33% rise in 2024, while ONGC shares have provided a 76% return to investors in the past year.
Financial Performance of ONGC 📊
In the fourth quarter of the financial year 2023, ONGC’s net profit on an annual basis increased by 78% to Rs 11,526 crore. This marked a significant improvement from the consolidated net profit of Rs 6,478 crore in the same quarter of the previous financial year. The company’s revenue also increased by 1.64% to Rs 1.66 lakh crore on an annual basis.
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