2 PSU Stocks Soon To Trade Ex-Dividend, ICICI Direct Sees Upside Potential, Buy

ICICI Direct has assigned "Buy" on two PSU stocks, NMDC Ltd. and Oil and Natural Gas Corporation Ltd (ONGC). These two stocks on 14th February 2023 declared an Interim Dividend for the Year ending March 2023. Below are the details:

NMDC - Dividend

According to the regulatory filing by the company, "Declared first interim dividend at the rate of Rs. 3.75 ps. (Rupees Three and Seventy Five Paise Only) per equity share of face value of Re. 1/-each for the financial year 2022-23."

It added, "The first interim dividend shall be paid/dispatched to the Equity Shareholders of the Company, as per the provisions of the Companies Act, 2013, whose names appear in the Register of Members of the Company or in the records of the Depositories as beneficial owners of the equity shares as on Friday, the 24th February 2023, which is the Record Date fixed for the purpose."

NMDC - Stock Outlook

The brokerage has assigned "Buy" on NMDC with a target price of Rs 140/share, implying an upside of 16% from its current level. The stock last traded at Rs 121.20 apiece.

It gained 2.02% in 1 week and declined 3.73% in 1 month. It declined 16.21% in 1 year, gained 14.07% in 3 years and declined 7.72% in 5 years.
NMDC is a Navratna category PSU stock, under the ownership of the Ministry of Steel, Government Of India. It is a midcap stock having a market capitalisation of Rs 35,518.94 crore.

 

NMDC - Buy for a Target Price of Rs 140/share

According to brokerage, NMDC's share price has given a return of ~15% in the last one year (from ~Rs 103 in February 2022 to ~Rs 118 levels in February 2023). "We maintain our BUY rating on the stock. We value NMDC at Rs 140, 5x FY24E EV/EBITDA," the brokerage has said.

 

ONGC - 2nd Interim Dividend

The company in its regulatory filing has said, "The Board of Directors has declared 2nd interim dividend at the rate Rs.4 per equity share of face value of Rs. 5/- each i.e.@ 80% for the Financial Year 2022-23. As informed vide letter dated 09.02.2023, Friday, the 24.02.2023 has been fixed as Record Date for determining eligibility of shareholders for the payment of the said Interim Dividend. The dividend will be paid to the eligible shareholders on or before 16.03.2023."

 

ONGC - Stock Outlook

The brokerage assigned "Buy" on the ONGC with a target price of Rs 180/share, implying an upside of 15% from its current level. The stock last traded at Rs 156.60 apiece. 

 

 

The stock has given 6.75% positive return in 1 week, and 5.92% in 1 month, respectively. It declined 8.82% in 1 year. It gave the highest 56.68% in 3 years. However, it declined 16.21% in 5 years.

ONGC is a Maharatna category PSU stock under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It is a large-cap stock with a market capitalisation of Rs 1,97,007 crore.

 

ONGC - Buy for a Target Price of Rs 180/share

According to the brokerage, Net oil realisation would remain capped at around US$75-76/bbl in the near to medium term on account of SAED levied by the government. Even if gas prices get capped at US$6.5/bbl after Kirit Parikh committee recommendations, realisations are likely to remain high as they are well above historical averages. "With commencement of production from the KG Basin in May, volumes are expected to grow, going ahead. We change our rating on the stock from HOLD to BUY. We value ONGC at Rs 180 i.e. Rs 150 for core oil & gas business and Rs 30 for subsidiaries and other investments," ICICI Direct said.

 

Disclaimer

The stocks have been picked from the brokerage reports of ICICI Direct. 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 consult with certified experts before making any investment decision.