ONGC shares rise 6%, hit 52-week high after Fitch assigns stable outlook

Shares of ONGC Ltd hit a fresh 52-week high today after ratings agency Fitch  Ratings maintained its rating at 'BBB-' with stable outlook. ONGC shares zoomed 5.96% intraday to a fresh 52 week high of Rs 184.65 on BSE. The stock ended at Rs 174.25 on Thursday. ONGC stock has gained 20.71% this year and risen 34.73% in a year. Total 16.16 lakh shares of the firm changed hands amounting to a turnover of Rs 29.24 crore. Market cap of the state-owned firm rose to Rs 2.28 lakh crore.    

In terms of technicals, the relative strength index (RSI) of ONGC stands at 50.8, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.6, indicating very low volatility in a year. ONGC shares are trading higher than the 5 day, 10 day, 20 day, 30 day 50 day, 100 day, 150 day and 200 day moving averages.

ONGC is considered to have a moderate level of creditworthiness, the Fitch’s rating indicates. The businesses rating also said that the future outlook for ONGC is stable.

"ONGC's ratings are constrained by the ratings of the state of India (BBB-/Stable), its majority owner," the rating agency said.

Maintaining ONGC's Standalone Credit Profile (SCP) at 'bbb+', Fitch recognises ONGC's status as India’s largest oil and gas producer, boasting significant reserves, and geographically diversified business model.

"We maintain ONGC's Standalone Credit Profile (SCP) at 'bbb+', which reflects ONGC's scale as the largest oil and gas (O&G) producer in India, its significant reserves and production, and its vertically integrated and geographically diversified business model, which are comparable with that of peers rated in the 'A' category by Fitch," Fitch said in a statement.

ONGC reported a revenue of Rs 1,66,367 crore in the June 2023 quarter against a revenue of Rs 1,84,148 crore in the corresponding quarter a year ago.    

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Profit rose to Rs 14,133 crore in Q1 against Rs 11,936 crore in the corresponding quarter of the previous fiscal. Operating profit climbed to Rs 30,106 crore in Q1 against Rs 18,855 crore in the corresponding quarter of the previous fiscal.  

For FY23, net profit climbed to Rs 35,440.5 crore against Rs 45,522 crore profit in FY22. Revenue from operations surged to Rs 6,40,400 crore in the last fiscal against Rs 4,98,707 crore for the fiscal ended March 2022.   

ONGC is a crude oil and natural gas company. The company's business segments include exploration and Production, and Refining and Marketing. The Company is engaged in exploration, development and production of crude oil, natural gas and value-added products in India and acquisition of oil and gas acreages outside India for exploration, development and production, downstream (refining and marketing of petroleum products), petrochemicals, power generation, LNG supply, pipeline transportation, special economic zone (SEZ) development and helicopter services.

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