Rs 2.50 Dividend By ONGC: 23rd August Record Date; Put SL Rs 265 For Target?

The largest crude oil and natural gas company in India goes by the name Oil and Natural Gas Corporation (ONGC). ONGC has one of the highest market capitalisations among PSUs in India. The only fully integrated oil and gas firm in India is Maharatna ONGC. Following the announcement of the record date for the upcoming dividend by the Board of Directors, the PSU stock ONGC ended at Rs 328.95 on Wednesday, up 7.43%.

ONGC Dividend

"This has reference to our communication dated 20.05.2024, informing that the Board of Directors, interalia, recommended final dividend of Rs 2.50/- per share for FY'24, subject to the approval of members. In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that Friday, the 23rd August, 2024 has been fixed as 'Record Date' for determining eligibility of members for payment of Final Dividend for FY'24, if any, declared by the members of the Company in the ensuing Annual General Meeting of the Company," said ONGC in a stock exchange filing.

ONGC Q1 Results

For the first quarter ending June 30, 2024, the state-owned Oil and Natural Gas Corporation (ONGC) recorded a 15% YoY fall in net profit at Rs 8,938.10 crore. According to a regulatory filing, Oil and Natural Gas Corporation reported a net profit of Rs 10,526.78 crore for the same period last year. Compared to the same time in the previous fiscal year, when it was Rs 33,814.33 crore, the business's revenue from operations climbed by 4.30% to Rs 35,266.4 crore in the quarter under review.

ONGC said it had Rs 15,000 million Unsecured Non-Convertible Debentures (NCDs) [ISINs INE213A08016 and INE213A08024] as of 30.06.2024. So far in FY 25, ONGC has reported a total of 5 discoveries. On June 5, 2024, Dalal Street Investment Journal (DSIJ) awarded ONGC with the Best PSU Award 2023 in the Maharatna of the Year - Non-Manufacturing category.

ONGC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of ONGC is Rs 327. The stock has recently reversal from support level and formed a morning star candlestick pattern on the daily chart with a significant increase in trading volume, indicating a sideways to bullish trend. If the price manages to close above the Rs 340 level, it may have the potential to reach short-term targets of Rs 400 & Rs 425. On the other hand, immediate support levels are located at Rs 290. These levels can be considered as opportunities to buy on dips."

"The Relative Strength Index (RSI) currently stands at 57.5 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 265. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, ONGC appears to present an appealing buying opportunity for those aiming for a Rs 400 & Rs 425 price target, provided that appropriate risk management measures are in place," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.