Khandwala Securities has assigned an Outperformer rating on ONGC with a target price of Rs 1,154.
A report released on October 31 said: "ONGC is one of the most undervalued companies and yet to receive its due attention. Lack of clarity in policy regarding under recoveries, declining production from its league fields and falling crude oil price, have resulted in recent negative sentiments hovering around the stock. Revised lower crude oil price has reduced our valuation for company as a whole. However we expect lower subsidy sharing burden to offset the impact of lower crude oil price significantly. We don’t see significant variation in cash earnings of the company. The resources in OVL, KG basin and other prospective blocks have huge potential upside. We assign OUTPERFORMER rating to the stock with revised target price of INR 1,154."