Stock Market Today: Oil and Natural Gas Corporation (ONGC) share pice remain in focus . While on one hand the declining Crude oil prices are sentimentally negative for the ONGC share price on the other hand the removal of windfall tax on crude oil by the government is looked at in positive light. ONGC share price has corrected more than 15% in last 5 trading sessions.

However Jefferies expects more than 40% upside for the ONGC share price. their price target stands at ₹420 which is more than 40% higher than the current market price of ₹294 for ONGC

2. Higher profitability led by rising KG basin should offset higher operating expenses Management expects attractive profitability on back of higher crude realizations as the KG field production, which is not subject to Special Additional Excise Duty (SAED), The higher gas realizations which is benchmarked to HPHT gas (currently 50% premium to APM gas) and also lower statutory levies for initial years of production. Jefferies expects KG production to contribute 10% to FY26 estimated consolidated Earnings before interest, tax, depreciation and amortisation (Ebitda).

3. HPCL to cushion earnings: While the current weakness in crude prices hurts ONGC’s realizations impacting earnings at a standalone level, management believes that this should be partially offset by HPCL’s improved marketing profitability and hence cushion the overall impact on consolidated earnings, said Jefferies.

4. ONGC remains committed to green energy transition, said Jefferies as Management has reiterated its net zero target of 2038

Correction provides Buying opportunity feels Jefferies analysts who say that valuation remains favorable with ONGC trading at a steeper 65% discount to Nifty compared to its Long Term average of 50%

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.