ONGC, Oil India: Cheapest oil upstream stocks globally are a compelling ‘Buy’
Oil and Natural Gas Corporation (ONGC) and Oil India have seen their share prices fall by 18% and 32% respectively over the past 12 months, resulting in valuations that suggest crude oil prices far below historical norms. According to Antique Stock Broking, these valuations do not reflect the firm crude price, which has consistently remained above $65 per barrel, buoyed by Chinese stockpiling and ongoing geopolitical concerns. Even if crude were to dip to $60 per barrel in the near term, this would still be well above the implied prices currently factored into ONGC and Oil India market prices.
Both ONGC and Oil India are trading at significant discounts to their global upstream peers, as measured by asset and cash flow metrics. This…
