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    ONGC shares give up day's gain despite oil price rise, strong earnings; what to do with the stock?

    ONGC shares give up day's gain despite oil price rise, strong earnings; what to do with the stock?

    ONGC shares give up day's gain despite oil price rise, strong earnings; what to do with the stock?
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    By CNBCTV18.com  IST (Updated)

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    ONGC share price: Oil and Natural Gas Corporation shares failed to hold on to intraday gains on Monday, despite the company's strong set of Q3 earnings and amid rising crude oil prices. Here's what brokerages Citi and JPMorgan said on the ONGC stock.

    Oil and Natural Gas Corporation (ONGC) shares were in focus on Monday amid soaring crude oil prices and after the state-run explorer reported a strong set of earnings for the October-December period. ONGC shares bucked the trend through much of the session in a market-wide sell-off, rising as much as 4.8 percent to Rs 176.4 on BSE.
    However, the stock succumbed to negative territory at the close, finishing the day down 1.1 percent at Rs 166.5.
    Post-market hours on Friday, ONGC reported a more than three-fold jump in profit after tax to Rs 11,637 crore for the third quarter of the current financial year. Its quarterly revenue increased 45.3 percent on-year to Rs 1,45,685.6 crore, according to a regulatory filing.
    The ONGC board declared an interim dividend of Rs.1.75 per equity share for the financial year ending March 2022.
    Should you buy, sell or hold ONGC shares after the company's Q3 results? Here's what brokerages say
    Citi
    The brokerage maintained a 'sell' rating on ONGC with a target price of Rs 150.
    The company missed estimates on the EBITDA front due to higher operating expenditure, though the recent spike in crude oil price keeps the sentiment positive for now, according to Citi.
    The brokerage, however, warned that the sentiment could quickly reverse if and when crude rates ease.
    JPMorgan
    The brokerage continued with a 'buy' call on ONGC with a target price of Rs 235. The company saw a strong Q3 on the operating front and should see improvement given the trajectories of crude oil and gas rates, according to JPMorgan.
    ONGC offers the most attractive risk-reward in the Indian energy space, the brokerage said.
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