Rs 4/Share Dividend: Buy Maharatna Gas Stock, TP Rs 315: Motilal Oswal

Motilal Oswal has recommended investors to buy large cap state-owned PSU Oil and Natural Gas Corporation (ONGC) shares with target price of Rs 315 apiece. Current market price of ONGC shares 268.90 apiece. If you buy ONGC stock now at the current market price of Rs 268.90, you can fetch potential gain of 17.14%.

Oil and Natural Gas Corporation shares jumped 81% in last 1-year. The company on Feb 10 declared an interim dividend of Rs 4/share of the face value of Rs 5 each for FY 2023-24. Check details below:

ONGC Announces Interim Dividend, Record Date 3-Days Away: As per the BSE filing of the company dated February 10, 2024, "The Board of Directors have declared 2nd Interim dividend at the rate of Rs 4/- per equity share of face value of Rs 5/- each i.e. @80% for the Financial Year 2023-24." The BSE filing added, "As informed vide letter dated 02.02.2024, Saturday, 17th February, 2024 has been fixed as "Record Date" for determining eligibility of shareholders for payment of 2nd Interim Dividend. The dividend will be paid to the eligible shareholders on or before 10.03.2024."

ONGC Stock Performance & Return: The 52-week high price of ONGC shares on BSE is Rs 275.65 apiece and 52-week low price is Rs 145.55 apiece, respectively. The company has a market capitalisation of Rs 3,38,283.71 crore. ONGC shares gained 31% year-to-date, soared 38% in last 3-months, offered return of 81% in last 1-year, and rallied 177% in last 3-years.

ONGC Quarterly Earnings: The PSU announced a fall of 8% in its consolidated net profit at Rs 10,748 crore for the quarter ended December 2023. It declared a 2.2% decline in its revenue from operations for the quarter under review at Rs 1,65,569 crore as against Rs 1,69,213 crore in the corresponding quarter of last year. In the third quarter, its total crude oil production fell 3.3% from last year at 5.2 million metric tonnes (MMT). The total oil production in the first nine months of FY24 tumbled 2.9%.

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. 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.