There is a JPMorgan note on Oil and Natural Gas Corporation (ONGC) with a buy target at Rs 190, which is a 60 percent upside from current levels.
Why is ONGC in focus?
Crude oil has rallied to USD 70 per bbl, but ONGC is still trading at a deep discount.
Therefore, JPMorgan said that on consensus earnings, ONGC is currently trading at 6 times. But if valued at USD 70/bbl, then ONGC is just 3 times price to earnings. In fact, JPMorgan expects a large consensus earnings upgrade for ONGC going forward and believes that the stock is positioned to what metals were last year, with under ownership, with pessimism towards the base commodity which is oil now. Hence, maintaining a buy with a target price of Rs 190, which means 60 percent upside potential from current levels.
For more details, watch the video