ONGC Supply Target Soars In The Middle Of Windfall Tax Uncertainty
Mumbai– CLSA has substantially raised its target cost for ONGC supply to 415, citing the supply’s undervaluation relative to current petroleum costs, forecasting a 60 % advantage.
- Target Price: Increased to 415 per share.
- Rationale: Stock cost mirrors $ 63/ barrel crude, while existing costs are around $ 100
- Presumptions: Cost target based on $ 89 crude in 2027 and $ 82 in 2028
- Threat: Battle resolution can invalidate cost projections.
- Financier View: Unpredictability surrounding future windfall taxes and geopolitical occasions are impacting investor self-confidence. The broker agent’s expectation depends upon sustained high crude rates in the coming years.
