Rs 2.50/Sh Dividend: Buy Oil & Gas PSU, TP Rs 340; Record Date Yet To Be Set: Motilal Oswal

Motilal Oswal has recommended investors to buy Maharatna public sector undertaking (PSU) Oil And Natural Gas Corporation Ltd shares with target price of Rs 340 per share. Current market price of Oil And Natural Gas Corporation Ltd share on BSE is Rs 267.00 per share with intraday fall of 1.00%. ONGC shares offered return of 70% in last 1-year and 120% in last 3-years. However, ONGC share declined over 5% in last 1-month. ONGC recommended final dividend of Rs 2.50 per equity share on May 20 and yet to announce the record date. It offered 3 bonus shares till date and carried out stock split once in 1:2 ratio. Check key details below:

Oil And Natural Gas Corporation Ltd Recommended Dividend On May 20: As per the regulatory filing of ONGC issued as on May 20, 2024, "The Board of Directors have recommended final dividend at the rate of Rs 2.50/- per equity share of face value of Rs 5/- each i.e. @50% for the Financial Year 2023-24, subject to the approval of shareholders in the ensuing Annual General Meeting of the Company."

ONGC Yet To Fix Record Date For Dividend: The BSE filing added, "further, the record date for the payment of final dividend will be intimated separately."

ONGC Dividend History: Oil And Natural Gas Corporation Ltd. announced 57 dividends since August 29, 2000. In last 1-year, ONGC declared an equity dividend amounting to Rs 10.25 per share. At the current share price of Rs 267.00, ONGC offers a dividend yield of 3.84%.

ONGC Share Performance: ONGC shares offered return of 30% year-to-date, soared 31% in last 6-months, gained 95% in last 2-years, and surged 61% in last 5-years. The 52-week high price of Oil And Natural Gas Corporation share on BSE is Rs 292.95 per share (as on 03/05/2024) and 52-week low price is Rs 155.85 per share (as on 26/06/2023), respectively. The large cap PSU has a market capitalisation of Rs 3,35,893.45 crore.

ONGC Q4: Oil and Natural Gas Corporation declared a growth of approximately 78% in its consolidated net profit at Rs 11,526.53 crore for the quarter ended March 31, 2024 as against Rs 6,478.23 crore announced in the corresponding quarter of last year. The PSU announced minor surge in revenue from operations for Q4 FY2024 to Rs 1.66 trillion as against Rs 1.64 trillion announced in Q4 FY2023. For the full FY24, ONGC registered its highest ever consolidated net profit of Rs 57,101 crore, as per statement issued by the company.

Jefferies, Motilal Oswal Give Buy Call: Global brokerage firm Jefferies issued buy recommendation to ONGC shares amid attractive valuations with target price of Rs 390 per share. According to the analyst, "The valuation does not capture adequately due to its sharp discount as against the Nifty. In the past, reforms in crude and gas pricing impacted the company's profitability above past decade averages. Going ahead, we believe that a sharp rise or fall in crude prices could be potential risks for ONGC." Meanwhile, Motilal Oswal assigned buy call to ONGC stock with target price of Rs 340 per share.

ONGC Stock Split History: ONGC sub-divided the face value of its share once February 8, 2011. ONGC last split the face value of its shares from Rs 10 to Rs 5 in 2011.The share quoted ex-split from February 8, 2011.

ONGC Bonus Share History: Oil And Natural Gas Corporation offered 3 bonus issues since October 27, 2006. The last Bonus that ONGC offered was in the ratio of 1:2 with ex-date fixed as December 15, 2016.

About: Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL and MRPL (Last two are subsidiaries of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.