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ONGC share price: Need to you buy ONGC shares write-up first-ever quarterly loss?

Brokerages taken care of their bullish view on ONGC even as the business posted its first-ever quarterly loss after it took an impairment on falling crude oil prices.
The oil and fuel producer posted a Rs 3,098 crore loss in the January-March quarter as compared to a profit of Rs 4,240 crore in the identical period a year back again.
Motilal Oswal Economic Expert services and Edelweiss Securities managed ‘Buy’ call on ONGC with a goal price of Rs 105 and Rs 100 (Rs 103 before), respectively.
The scrip traded 2.33 per cent down at Rs 79.50 at about 11.15 am (IST), whilst the benchmark BSE Sensex was up .52 per cent at 35,096 at about the same time.
“ONGC is also expected to develop its gasoline production by close to 12 for every cent and 26 for each cent to 27.9 billion cubic meters (bcm) and 35.2 bcm in FY21 and FY22E, respectively. Even though no oil production growth is predicted, ONGC’s endeavours to arrest decline from age-aged fields (accounting for 60–70 per cent of the complete oil production) is commendable,” Motilal Oswal Financial Expert services explained in a report.
Revenue in the fourth quarter declined to Rs 21,456 crore from Rs 26,759 crore a calendar year again. Crude oil production was marginally decrease at 5.82 million tonnes in January-March as when compared to 5.9 million tonnes in the past year.
All-natural fuel output slipped to 6.04 billion cubic meters from 6.56 bcm in January-March 2019 immediately after demand fell thanks to the Covid-19 lockdown.
According to Edelweiss, ONGC missed estimates by 63 for every cent largely owing to a one-time impairment loss value Rs 4,890 crore towards crude oil or fuel inventory. Impairment is now a world phenomenon with majors Shell and BP Plc far too planning to choose hit thereof.
“Realisations stood broadly in line. We count on ONGC’s Rs 80,000 crore well worth of jobs less than implementation to revive fuel production from FY20-23E with an EBITDA CAGR of 13 for every cent. Having said that, we keep on being cautious on FY21 demand outlook bearing in mind the Covid-19 crisis and the Saudi-Russia uncertainty on crude production cuts,” Edelweiss additional

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