ONGC Q1 results on Jul 23, 2009 , what to expect ?

opagarwal's picture

ONGC Q1 result are due on 23rd. Stock is trading at Rs 998 today . With oil prices mostly down this quarter , is profit going to be substantially down ? Is it time to sell ONGC before it plunges ?


 #

Key is keep your expectations low . When the expectations are low and companies deliver decent profit stock runs.

 
 #

In last qurter ONGC profit was 2207 cr. That was 16% down compared to similar period last year. The crude reliation price or ongc was $43.4/barrel. Now there is hardly anything in ONGC hand regarding the crude selling price cuz it's determined by govt . Only thing ONGC can do is increase output to increase profit.I think profit will be further down since there is no additional significant addition in output. ONGC trading at 1000Rs i.e a P/E 0f 10. And if profit slides further p/e will go up. P/E of 10 or more is expensive for oil companies. Exon mobile trade at 8 p/e .I think it's time to sell ONGC.

 

Recent Comments and talks

What is AskDalal ?

AskDalal is a investment blogging portal dedicated to Indian investment community , where every blog answers a question.It may be stocks, bonds,commodity, real estate or anything else.Post your blog title  or a question, community will do research and answer the question to give you your own research report.It is 100%free , no registration is required to browse and ask questions.It's great for writers looking for article topic,and cool for investor looking for answers.

>>> faq

Top Contributors

UserPoints
suniljain10,440
admin2,990
rahul das2,460
anilmehta1,710
dipak1,540
rakeshseth1,500
himesh1,350
stockguru1,110
shah1,060
bharat_vora1,040

Become Askdalal Research Analyst

Are you an MBA (finance) students, economics students, or journalist with broad interest in stocks, investing and finance. Do you want to polish your skills before getting into job market ? Come join askdalal as Research Analyst.Email your resume to tripti.shah@askdalal.com.

If your resume is impressive you will get chance to show your talent,polish your skills and earn money along the way. At the convenience of sitting at your home computer. See rules for askdalal investment analyst.

Latest Dalal

  • rosenjack13
  • bangalore.scrap
  • bipin1987310
  • mohammed ilyas
  • mehta.a10