Oil India , ONGC share price gain up to 13% to 52 week high: Should you Buy, Sell or Hold the stocks?

Stock market Today: Oil India, Oil and Natural Gas Corporation gained up to 13% during intraday trades on Thursday. Even other Oil produces as Selan Exploration Technology, Hindustan Oil Exploration company share prices gained up to 22%. Hindustan Oil Exploration share price scaled 52 week high on Thursday, while Selan Exploration share price was trading close to 52-week highs scaled recenly.

The upstream oil Producers as ONGC , OIL India share price and even those of Hindustan Oil Explorations and Selan Exploration remained in spotlight on expected rise in exploration and Production activities in the country.

Union Minister Hardeep Singh Puri speaking at the first edition of Urja Varta 2024 on Thursday, emphasized on increasing self reliance to meet country's Oil & Gas requirement and helping reduce imports, said that Exploration and Production offers investment opportunities worth $100 billion by 2030, suggested news reports.

A joint working group comprising of representatives from private Exploration and Production operators, the National Oil Companies, Ministry of Petroleum and natural Gas , and Directorate General of Hydrocarbons (DGH), has been formed as per news reports, to increase oil & Gas production.

All this is very positive for upstream Oil And Producers as ONGC, OIl India earnings prospects and share price and even for Selan Exploration and Hindustan Oil Exploration shere prices.

The pricing reforms already have taken place. While a windfall tax by the government limits oil and Gas realisations, nevertheless the adjustment made by government every fortnight also ensures that net realisation for Oil producers remain healthy though almost at same levels/

Analysts at Motilal Oswal Financial Services in their Q1FY25 review have said that Oil realization (net of windfall tax) will remain flat YoY for ONGC. They expect Oil volumes to be flat and say that update on ramp-up of gas production remain the key monitorable

Even for Oil India MOFSL analysts in their preview said that Increase in production at the Baghjan field is a key monitorable over the medium term.

Clearly rising production can lead to fresh earning upgrades For now with expected some tick in Oil and gas production and better as realizations, analysts at MOFSL had anticipated 20% upside for ONGC and 15% for Oil India share price.

Elara Securities analysts post Q4 results had reiterated Buy on ONGC post Q4 results, given production growth visibility through FY24-26 as also new guidance that growth may be maintained even beyond FY26. Clearly production growth is what analysts are eyeing to gauge earnings improvement prospects

For Oil India while Moilal Oswal analysts had said that Volume ramp-up, Numaligarh Refinery start are key medium-term catalysts. Yes securities in their recently had said that OIL India continues to advance its operational endeavors, boasting 58 E&P blocks domestically, alongside international projects spanning 7 countries. With a significant equity stake in NRL, undergoing a capacity expansion from 3mmt to 9mmt, bolstering its regional presence, Yes Securities  had maintained Buy ratings on Oil india

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions