ONGC share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about ONGC share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned ONGC share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
ONGC Company Profile
ONGC is the largest crude oil and natural gas company in India, contributing around 71 percent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL, and MRPL (The last two are subsidiaries of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG. ONGC has a unique distinction of being a company with in-house service capabilities in all areas of Exploration and Production of oil & gas and related oil-field services
ONGC subsidiary HPCL is a Maharatna CPSE. HPCL has the second-largest share of product pipelines in India with a pipeline network of more than 3370 km for transportation of petroleum products and a vast marketing network consisting of 14 Zonal offices in major cities and 133 Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Pipeline networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships.
ONGC subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) is a schedule ‘A’ Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. The 15.0MMTPA (Million Metric Ton per annum) Refinery has got a versatile design with complex secondary processing units and high flexibility to process Crudes of various API, delivering a variety of quality products. MRPL, with its parent company Oil and Natural Gas Corporation Limited (ONGC), owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing 0.905 MMTPA of Para Xylene and 0.273 MMTPA of Benzene.
Share Holding Pattern
ONGC share Price Target 2022
Domestic oil and gas production (including JV’s production) stood at 45.35 MMTOE versus 48.25 MMTOE in the preceding fiscal. The Company remains positive of a turnaround in output in FY’22 as the threat of further disruptions mirroring the one in the first half of 2020 has abated a bit and the industry to readjusts its modus operandi to this ‘new normal’ of sustaining operations and doing businesses.
Looking forward, by the year 2024 ONGC projecting hydrocarbon domestic production in excess of 60 MMTOE with the portfolio clearly tilted in favor of cleaner sources, driven by strong output from our KG deep-water field in the Eastern Offshore as well as Heera in the shallow waters of Western offshore.
Currently, 15 major projects are under implementation with a total projected cost of around `605,015 Million with an envisaged gain of more than 110 MMTOE. In view of the increasing significance of gas in the future energy mix, ONGC has acquired a 5 percent stake in the India Gas Exchange, India’s first Gas Exchange which provides an automated platform for trading of natural gas.
The Board has also approved the creation of a new wholly-owned subsidiary Company for Gas & LNG business value-chain, subject to further necessary approvals. However, the dismally low domestic gas prices continue to dent the profitability of the ONGC gas business. It is however believed that these early choices will improve optionality and future pay off as the energy transition takes off.
ONGC is also pursuing opportunities in the field of Renewables in India and abroad. ONGC added another 6 MW of solar capacity taking its total installed capacity in excess of 30 MW. A study for a pilot project in Offshore Wind has already been commissioned for assessing the opportunities in this niche segment. ONGC has also taken up the country’s first geothermal energy project in Ladakh. ONGC’s total installed capacity in renewables space has exceeded 325 MW and has a long distance to cover as ONGC is targeting 10 GW of installed renewable capacity by 2040.
By considering all these factors and opportunities, ONGC share price target for 2022 is Rs 180 and the second ONGC share price target is Rs 184.
|ONGC Share Price Target 2022|
|Target 1 – Rs 180|
|Target 2 – Rs 184|
ONGC Share Price Target 2023
Your Company has installed about 31 MW capacity Solar Power plants across work centres depending on the availability of open spaces and rooftops. Since 2008, your company has been a forerunner in adopting renewable energy with its first 51MW wind power project (34 numbers of 1.5 MW Wind turbine generators) in the Bhuj district of the state of Gujarat. Your Company has a dedicated Renewable Energy Cell (REC) which acts as the knowledge center on all renewable energy projects. In 2015, its second wind power plant with 102 MW (49 numbers of 2.1 MW Wind Turbine Generators) capacity at Jaisalmer, Rajasthan was successfully completed enhancing the capacity of wind energy to 153 MW.
The total installed capacity of renewable energy as of 31.03.2021 is about 184 MW (Solar: 31.06 MW and Wind: 153 MW). Another 20 MW solar projects are underway for commissioning in work centers. Your Company is committed to undertaking such projects in the coming times and has set an initial target of 2 GW capacity by 2030. ONGC share price target for 2023 is Rs 201 and the second ONGC share price target is Rs 207.
|ONGC share price target 2023|
|Target 1 – Rs 201|
|Target 2 – Rs 207|
ONGC Share Price Target 2024
The remarkable ascent of cleaner energy alternatives – from renewables and EVs to batteries and hydrogen – presents a clear and persistent challenge to the ‘status quo within the oil and gas sector. At least for the next 20 years, the threat is more tactical than existential in nature as the new energy paradigm warrants a serious rethinking and restructuring of extant business models. Wind and Solar have made strong inroads in the power sector. In 2020, renewables accounted for over 80 percent of the growth in generating capacity, as per IRENA.
The share of renewables in the power sector is already at 27 percent and is likely to go up further with the development of more efficient and cheaper storage solutions. In India itself, as per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%.
Although gas holds its ground there as ‘transition’ and ‘cleaner’ fuel, there is no long-term assurance on its continued utility in a low-carbon setting unless there are steps taken to decarbonize the value-chain of the fuel further through technologies like CCS or green ‘LNG’. Coming to the impact of electric vehicles on oil demand replacement, in 2020, EVs displaced the equivalent of 0.4 percent of total oil demand (~370,000 BPD) as per IHSMarkit. Fast forward to 2025, oil substitution by electrification of road transport will translate to a potential loss of anywhere between 1.1- 1.5 million BPD, or as much as 1.4 percent of total demand.
EVs have certainly benefitted from strong policy mandates, but this has happened, counter-intuitively, in a year of low oil prices means that the trend is not an exception at all. By considering all these factors, ONGC share price target for 2024 is Rs 224, and the second ONGC share price target is Rs 232.
|ONGC share price target 2024|
|Target 1 – Rs 224|
|Target 2 – Rs 232|
ONGC Share Price Target 2025
According to PPAC figures, domestic petroleum products consumption in FY’21 declined by over 9 percent to 194.6 MMT, as demand for transport fuels crashed across the board as the imposition of countrywide lockdowns of varying intensities in response to the COVID-19 outbreak severely tamped down consumption. The contraction was the most in the first quarter (Apr-Jun) of FY’21, especially in April as liquids consumption dropped to 9.4 MMT – the figure for April 2020 was 18.3 MMT, signifying a drop of almost 50 percent.
While there is widespread consensus on India being the world’s demand hub of the future, actual growth in demand may be on the lower side, a result of the general slowdown of economic and industrial activity that preceded the pandemic and the pandemic has further intensified this demand sluggishness. This sentiment is echoed in IEA’s country outlook for India where it states “Prior to the global pandemic, India’s energy demand was projected to increase by almost 50 percent between 2019 and 2030, but growth over this period is now closer to 35 percent in the Stated Policies Scenario, and 25% in the Delayed Recovery Scenario”.
That being said, actual recovery post the first quarter of FY’21 has been evidently strong – products consumption in Q4FY’21 stood at 54.1 MMT versus 52.8 MMT in Q4FY’20. The potential impediment to sustaining this growth is the course of the pandemic in the country. Although the devastating second wave which hit the country in April and May of this year did not impair demand like in 2020 as the lockdowns were more localized and less stringent, the continued threat of COVID-19 will weigh down on prospects of stable demand buildup. ONGC share price target for 2025 is Rs 248 and the second ONGC share price target is Rs 255.
|ONGC share price target 2025|
|Target 1 – Rs 248|
|Target 2 – Rs 255|
Also read: IOB share price target 2022, 2025, and 2030.
ONGC Share Price Target 2030
India is the world’s third-largest energy consumer, behind China and the US. In the coming decades, India’s role will become central to global energy demand growth as China’s economic model of expansion recalibrates away from manufacturing-led to service-oriented resulting in less energy intensity and relatively less buoyant demand growth. In the preceding two decades as well, the country’s primary energy consumption growth has been quite impressive – energy consumption grew by 5.05 CAGR during 2000-2019.
During the same period, global energy demand growth averaged 2.08 CAGR. But the COVID-19 pandemic is, by far, the most damaging disruption the energy sector has encountered with total energy requirements estimated to have fallen by 2.5 percent (as per Wood Mackenzie) in 2020. The oil demand contraction is even more acute with total liquids consumption falling by over 9 percent. The country’s energy mix is highly dependent on fossil fuels, which cater to over 90 percent of the domestic energy needs.
While the composition of the basket is unlikely to see any sudden and marked shifts, over the longer term, renewables will be a valuable contributor, especially in the power sector, and the impressive rise of capacity additions as well as successful recent auctions are a clear indicator of the trend. The country is the world’s fifth-largest renewable energy market with an installed capacity of close to 95 GW. As part of its COP 21 Nationally Determined Contributions (NDCs) commitment, the country has set an ambitious target of 175 GW by 2022.
While the pandemic seriously hampered capacity growth in 2020 the pace is likely to pick up in 2021 and 2022. Considering the continued relevance of oil and gas in the domestic energy basket of the future, ONGC’s contributions are vitally important for boosting supply security in a country that has struggled with a very high degree of import dependence. By considering all the above-mentioned factors and extensive research, the ONGC share price target for 2030 is Rs 590 and the second ONGC share price target is Rs 635.
|ONGC share price target 2030|
|Target 1 – Rs 590|
|Target 2 – Rs 635|
ONGC Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||ONGC Share Price Target|
|ONGC Share price target 2022 (Target 1)||Rs 180|
|ONGC Share price target 2022 (Target 2)||Rs 184|
|ONGC Share price target 2023 (Target 1)||Rs 201|
|ONGC Share price target 2023 (Target 2)||Rs 207|
|ONGC Share price target 2024 (Target 1)||Rs 224|
|ONGC Share price target 2024 (Target 2)||Rs 232|
|ONGC Share price target 2025 (Target 1)||Rs 248|
|ONGC Share price target 2025 (Target 2)||Rs 255|
|ONGC Share price target 2030 (Target 1)||Rs 590|
|ONGC Share price target 2030 (Target 2)||Rs 635|
Frequently Asked Questions
Is ONGC share a good buy?
Yes, ONGC share is a good buy for the long term. ONGC is strong in terms of financials and fundamentals., the company also gives regular dividends which come as a secondary source of income other than share price appreciation.
What is the future of ONGC share price?
ONGC share price target for 2022 is Rs 180, ONGC share price target for 2023 is Rs 201, ONGC share price target for 2024 is Rs 224, ONGC share price target for 2025 is Rs 248, and ONGC share price target for 2030 is Rs 590.