This big stock can fall to Rs 230
Business Business: Shares of Oil and Natural Gas Company (ONGC) grabbed attention in Tuesday’s trade today. The company’s shares rose 2.2 per cent to an intraday high of Rs 302. However, investment firms are cautious about these stocks and recommend selling them. HSBC has downgraded ONGC from “unchanged” to “hold” due to falling oil prices and bankruptcy concerns. The broker has set a price target of Rs 230 for the oil and gas stock, indicating a 24% downside. HSBC cited several challenges including low production volumes, delays in key projects and rising capital costs for green energy companies. These factors, along with volatility in oil prices, make the company’s near-term outlook cautious.
The stock has gained nearly 60% over the past year and 44% from 2024 to date. Oil and gas reserves have fallen more than 10 per cent so far in September, after falling 1 per cent in August. Earlier, it had risen 22% in July and nearly 4% in June. It rose for four consecutive months but fell 6.5 per cent in May, 5.5% in April, 1.3% in March, 4.5% in February and 23.5% in January. The stock has fallen over 12% from its August 2024 peak of Rs 344.60. It has now recovered over 68 per cent from its 52-week low of Rs 179.80 hit in October last year.
