>ONGC: Aspiration to double overall production by 2030

Ad-hoc subsidy a near-term risk; sector reforms in the offing


 ONGC has chalked out a perspective plan, under which it targets to double overall production and increase production of its overseas subsidiary, OVL, six-fold by 2030.


 The company expects to increase its gas production to 100mmscmd by 2016-17, led by the development of its deepwater fields in KG basin and Daman offshore.


 Ad hoc subsidy sharing is near-term risk. Given the precarious government finances and easing of inflationary pressure, it believes sector reforms are in the offing.


 The stock trades at >40% discount to global peers at 10.3x FY13E EPS of INR27.3. Buy


To read report in detail: ONGC


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