Share of Oil and Natural Gas Corporation Limited (ONGC) is currently trading at around Rs.228/- Existing as well as prospective Investors of the Company are asking the ONGC Share Price Target for medium and long term. People are coming to Share Market Experts and Investment Consultants and are asking for the ONGC Share Price Target for 2025,2030,2035 & 2040. In this article, we will discuss and analyse the present business and financial fundamentals of the company and also talk about the future business prospects of the company so that a fair target of the share price for 2025, 2030,2035 and 2040 can be fixed.
Discussion & Analysis of present Business & Financial performance with future business prospects of Oil and Natural Gas Corporation Limited:
Oil and Natural Gas Corporation Ltd (ONGC), India’s premier state-owned oil and gas exploration and production company, has experienced a mixed financial performance recently, coupled with strategic initiatives aimed at future growth.
Recent Financial Performance:
In the second quarter of the fiscal year 2024-25 (July-September 2024), ONGC reported a 17% increase in standalone net profit, reaching ₹11,948 crore, up from ₹10,238 crore in the same period the previous year. This rise was primarily attributed to lower statutory levies, including a reduction in windfall taxes, despite a 3% decline in revenue from operations to ₹33,881 crore. The average crude oil realization price decreased to $78.33 per barrel from $84.84 in the corresponding quarter of the prior year.
However, in the third quarter (October-December 2024), ONGC’s standalone net profit declined by 17% to ₹8,240 crore, down from ₹9,892 crore year-on-year. This decrease was largely due to lower crude oil prices, with the firm realizing $72.57 per barrel compared to $81.13 in the same quarter of the previous year. Gross revenue also fell by 3.1% to ₹33,771 crore during this period.
Operational Highlights:
Despite financial fluctuations, ONGC has made strides in enhancing its operational efficiency. The company achieved a 2.2% increase in standalone crude oil production during Q3 FY25, producing 4.653 million tonnes compared to the same quarter in the previous fiscal year. For the first nine months of FY25, crude oil production rose by 1.2% to 13.858 million tonnes. Natural gas production also saw a marginal increase of 0.3% during Q3 FY25, totaling 4.978 billion cubic meters.
Future Prospects:
ONGC is actively pursuing initiatives to bolster its future business prospects:
- Enhanced Oil and Gas Production: The company expects significant production boosts from its KG-DWN-98/2 block in the Krishna-Godavari basin. Oil output is projected to reach 10,000 barrels per day (b/d) by November 2023, doubling to 20,000 b/d by the end of FY24, and targeting 45,000 b/d by FY25.
- Green Energy Investments: Aligning with global sustainability trends, ONGC plans to invest ₹2 lakh crore by 2038 to achieve net-zero carbon emissions. An initial investment of ₹1 lakh crore by 2030 is earmarked for expanding its green energy portfolio, including developing 10 gigawatts (GW) of renewable energy capacity and exploring green ammonia projects.
- Strategic Acquisitions: In a move to diversify and strengthen its energy offerings, ONGC’s unit acquired PTC Energy for ₹9.25 billion ($106.02 million). PTC Energy operates wind generation facilities with a capacity of 288 megawatts across seven locations in three Indian states, generating ₹3.22 billion in revenue in fiscal year 2024. This acquisition aligns with India’s goal to establish 500 GW of non-fossil fuel electricity generation capacity by 2030.
- International Collaborations: ONGC has entered into a memorandum of understanding with Brazil’s Petrobras to explore cooperation in exploration and production, oil and gas sales, decarbonization efforts, and biofuels development. This partnership aims to expand mutual opportunities and underscores ONGC’s commitment to global energy collaboration.
In summary, while ONGC has faced recent financial challenges due to fluctuating oil prices, the company’s strategic initiatives in enhancing production, investing in renewable energy, and forming international partnerships position it well for sustainable future growth.
SHARE PRICE TARGETS:
ONGC Share Price Target 2025
Based on the above discussion and analysis, the share price of Oil and Natural Gas Corporation Ltd may touch the level of around Rs.250-275 in 2025.
ONGC Share Price Target 2030
Based on the above discussion and analysis, the share price of Oil and Natural Gas Corporation Ltd may touch the level of around Rs.450-500 in 2030.
ONGC Share Price Target 2035
Based on the above discussion and analysis, the share price of Oil and Natural Gas Corporation Ltd may touch the level of around Rs.800-900 in 2035.
ONGC Share Price Target 2040
Based on the above discussion and analysis, the share price of Oil and Natural Gas Corporation Ltd may touch the level of around Rs.1400-1500 in 2040.
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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