ONGC - BUY, 44% upside - Ambit

ONGC will declare its 1QFY14 results today. We expect the company to deliver a PAT of Rs47.8bn (vs Bloomberg consensus estimates of Rs50.9bn). Our earnings expectations were earlier based on: (a) the assumption that ONGC shares Rs112bn of subsidy, implying that ONGC's net crude realisation is likely to be US$49/bbl in 1QFY14 (vs US$50.9 in 4QFY13 and US$46.6 in 1QFY13), and (b) the actual monthly production numbers published by the MoPNG for April and May, which we have extrapolated for June.

Source : Equity Bulls

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