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ONGC, Oil India surge 5%; gain up to 41% in 6 months on high oil prices

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3 years ago

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ONGC, Oil India surge 5%; gain up to 41% in 6 months on high oil prices

Shares of state-owned oil exploration & production companies – Oil Natural Gas Corporation (ONGC) and Oil India – rallied up to 10 per cent on the BSE in Wednesday’s intra-day trade as oil prices surged to their highest levels since 2014.

Brent crude oil prices extended gains as the conflict in Ukraine escalated, fanning fears of lower supply from the top oil exporter. Western countries have also slapped fresh sanctions on Russia in response to the invasion of Ukraine, and Russian President Vladimir Putin responded by putting his country’s nuclear deterrent on a high alert.

Brent futures rose nearly 5 per cent on Wednesday to top $110 a barrel-mark, their highest since 2014, as a global agreement to release crude reserves also failed to calm fears about supply disruptions from Russia’s invasion of Ukraine, news agency Reuters reported.

Among individual stocks, Oil India surged 9.8 per cent to Rs 245, while ONGC gained 4.6 per cent at Rs 168.05 on the BSE in intra-day. In comparison, the S&P BSE Sensex was down 1 per cent at 55,649 at 09:30 am. In the past six months, ONGC and Oil India have outperformed the market, having rallied 41 per cent and 30 per cent, respectively, as against a 3.8 per cent decline in the benchmark index.

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Earnings outlook for upstream PSUs has improved considerably given the recent rise in crude oil prices at above $90/bbl mark and expectation of a further steep hike in domestic gas price over H1-H2FY23 on current gas price of $2.9/mmBtu. High oil & gas prices would boost overall profitability of ONGC and OIL. However, oil and gas production are expected to recover gradually with majority of the growth being back-ended (i.e. by FY2024E-FY2025E).

“The recent sharp surge in crude oil prices and expectation of further steep hike in domestic gas prices from April 2022 would drive a 40 per cent CAGR in Oil India’s standalone profit after tax (PAT) over FY2021-FY2024E and improve RoE to 12.5 per cent (versus only 5.4 per cent in FY2021). Moreover, the recent stake increase in Numaligarh Refinery (NRL) could create long-term value for Oil India,” brokerage firm Sharekhan said. It maintains a ‘Buy’ rating on Oil India with a revised SoTP-based price target of Rs 290.

Complete News Source : Business Standard

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Virat Kohli pays tribute to Ratan Tata, Jay Shah ‘deeply saddened’ by veteran industrialist’s demise

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3 weeks ago

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October 10, 2024

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Virat Kohli pays tribute to Ratan Tata, Jay Shah ‘deeply saddened’ by veteran industrialist’s demise

Tributes continue to pour in for Ratan Tata, with Virat Kohli and Jay Shah taking to their social media accounts to bid farewell to the industrialist.

Former Indian captain and batting legend Virat Kohli paid a touching tribute to Ratan Tata, the legendary business tycoon, who passed away on Wednesday night. Tata, a Padma Vibhushan recipient, was undergoing treatment in intensive care since Monday but breathed his last in Mumbai, leaving a profound impact on many across the nation.

Kohli expressed his condolences through his Instagram account on Thursday morning, sharing a heartfelt message along with a photo of the late industrialist.

Tata’s contribution to business, society, and philanthropy has been widely acknowledged, and his passing marks the end of an era.

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The Board of Control for Cricket in India (BCCI) secretary, Jay Shah, also conveyed his sorrow, stating, “Deeply saddened by the loss of Shri Ratan Tata Ji. His leadership, integrity, and dedication to society set a remarkable standard for legacy. My heartfelt condolences to his loved ones. Rest in peace, Sir.” Shah’s words reflect the collective grief of a nation that has long admired Tata’s contributions to the country.

BCCI’s tribute

Additionally, the BCCI issued a statement about his demise.

“The BCCI expresses its deepest sorrow and joins the nation in mourning the passing of Shri Ratan Tata ji. His invaluable contributions across diverse fields have been instrumental in shaping India’s growth and success story.

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His extraordinary legacy, founded on the principles of passion, empathy, visionary leadership, innovation, and excellence, will continue to inspire and guide future generations for years to come,” the statement read.

Ratan Tata, born on December 28, 1937, in Mumbai, embarked on his journey with the Tata Group in 1962 as a young executive. Over the decades, he transformed the group into a global conglomerate. His work was acknowledged with India’s second-highest civilian honour, the Padma Vibhushan, in 2008, and he received numerous accolades, including honorary doctorates from prestigious institutions in India and abroad.

Tata is survived by his family, including brothers and sisters Simone Tata, Jimmy Tata, Noel Tata, Aloo Tata, Shireen Jejeebhoy, Deanne Jejeebhoy, Leah Tata, Maya Tata, Neville Tata, Manasi Tata, Jamset Tata, Tiana Tata, and others, as mentioned in a family statement.

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