28 August 2011

Goldman Sachs:: Oil & Gas- ONGC(Buy, on CL) target price: Rs340, 23% potential upside

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Oil & Natural Gas Corporation
Our 12-month EV/GCI-based target price of Rs340 implies 23% potential upside
With FY12E EV/1P reserves of US$7.1/boe, it is one of the most inexpensive stocks globally.
US$1/bbl change in net oil price realization has a 1.8% impact and a US$1/mmbtu change in natural gas
prices has a 6.6% impact on FY12 EPS.
Reserve life of ONGC at greater than 15 years is among the best
OVL’s high oil price realizations to add significantly to the bottom line



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