ONGC Shares Hit 52-Week High Amid Investment Plans in Petrochemical Plants

ONGC Shares Hit 52-Week High

VoM News Desk | November 16, 2023 | 10:36 AM IST | Energy | Follow on Google News

ONGC Shares Hit 52-Week High Amid Investment Plans in Petrochemical Plants

ONGC Shares Hit 52-Week High Amid Investment Plans in Petrochemical Plants

Oil and Natural Gas Corporation (ONGC) shares saw a nearly 2% rise, reaching a 52-week high of ₹203.35 in Thursday’s trading session on the Bombay Stock Exchange (BSE). This surge followed the announcement of ONGC’s plans to invest a substantial ₹1 lakh crore in establishing two petrochemical plants, as reported by PTI. This move is part of the company’s strategy for energy transition, aiming to transform crude oil into high-value chemical products directly.

Technical Analysis and Stock Performance

The stock opened at ₹202.75 and touched an intraday low of ₹201, positioning itself among the top gainers in the Nifty 50 in early trade. According to technical analysts, ONGC’s stock has been demonstrating a positive trend with a higher top and higher bottom structure. The immediate support levels for the stock are identified around ₹194 and ₹190.

Company Officials Outline the Investment Scope

Senior company officials, including ONGC Director (Finance) Pomila Jaspal and Executive Director D Adhikari, discussed the investment plans during an investor call on the company’s second-quarter earnings. They revealed intentions to raise petrochemical capacity to 8.5-9 million tonnes by 2030. The plan includes two separate oil-to-chemical (O2C) projects in two different states, with an investment horizon stretching to 2028 or 2030.

Positive Sentiment and Market Outlook

The management’s expectations for the commencement of oil production in November 2023 and gas production by mid-2024 further bolstered the positive sentiment around ONGC stocks. According to trendlyne data, ONGC’s stock price rose 42.26% and outperformed its sector by 36.35% in the past year. Equity Technical and Derivative Analyst Rajesh Bhosale from Angel One suggested maintaining a positive approach towards the stock, predicting a potential upmove towards ₹220 in the near term.

Q2 Financial Performance

ONGC recently announced its financial results for the July-September quarter of fiscal year 2023-24 (Q2FY24), reporting a significant 142% surge in consolidated net profit at ₹16,553 crore, compared to ₹6,830 crore in the same period last year. This robust financial performance, coupled with the company’s ambitious investment plans, has contributed to the heightened investor interest and optimism surrounding ONGC shares.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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