5 years, 7 months ago

ONGC’s June quarter performance to keep already-low valuations in check

For state-run Oil and Natural Gas Corp. Ltd’s investors, the fact that the stock’s valuations are inexpensive, is perhaps, the only bright spot. Analysts from Emkay Global Financial Services Ltd said in a report on 13 August: “We are underweight on ONGC due to lack of triggers, weak oil output, commodity volatility and a significant divestment overhang.” Having said that, the undemanding valuation is one reason why many analysts have a positive view on the ONGC stock. Even as the stock may be pricing in the worst, the recently announced June quarter results aren’t bringing any brownie points. ONGC’s shares traded at a new 52 week low on Tuesday, ahead of its June quarter earnings announcement.

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