ONGC, Oil India share prices rise 77-146%: Should you Buy, Sell or Hold the stocks?

livemint.com:

ONGC (Oil and Natural Gas Corporation) and Oil India Ltd share prices have risen 77-146% in a year. As the share prices scaled 52-week highs recently the same was in the back of expected rise in production as indicated by the management in their conference calls.

For ONGC while the management expects 15% growth in oil and gas production over the next three years, for Oil India the guided production, implies a jump of 19% and 56% for gas and oil respectively over FY24 to FY26 as per Antique Stock Broking calculations. While rising volumes are supportive both of the oil & Gas producing upsteam companies, the stable realizations outlook also bodes well.

Also Read- Stock Check: JSW Infra jumps almost 100% from IPO price in 5 months; should you still buy? Analysts at Motilal Oswal Financial Services said that India upstream stocks have proven to be strong value plays in recent months, with both ONGC and Oil India trading higher led by robust production growth guidance. After a strong run up in stock prices, MOFSL still sees another 15-20% of ‘value’ upside’ left in both these stocks.

Also beyond this, they believe growth prospects become paramount for a sustained re-rating. Investor attention for both stocks could soon shift away from valuation discount (versus previous cycle) to assessing volume growth scenarios, analyzing operating costs (onshore versus offshore acreage) and the strength and visibility of the exploration and development pipeline, they added.