Brokerage Views: Jefferies, Citi On ONGC, Motilal Oswal On Signature Global

Citi and Jefferies have given their thumbs up to Oil and Natural Gas Corp. after the government approved 20% premium price for domestic gas produced from new wells. Motilal Oswal Financial Services Ltd. hiked its price target for real estate developer, Signature Global, after strong first quarter results.

NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Tuesday.

Jefferies On ONGC

The brokerage retained a 'buy' rating and has raised the price target of Rs 420 per share, which implies an upside of 26% from the previous close.
Premium pricing to apply to 14%, 21% and 28% of ONGC’s volumes in fiscal 2026, 2027 and 2028, respectively.
The new pricing increases earnings per share estimates for fiscal 2026 and 2027 by 2-3%.
The brokerage revised net profit estimates for fiscal 2026 and 2027 by 2% and 4%, respectively.
The key upside trigger is production ramp up from KG basin from the third quarter and removal of upstream cess.

Also Read: Government Allows ONGC, Oil India To Price Gas From New Wells At 20% Premium

Citi On ONGC

Citi maintained 'buy' with a target price of Rs 350 per share, implying a 2.6% upside from the previous close.
Ministry of Petroleum and Natural Gas approved 20% premium price for domestic gas from new wells.
The new gas pricing regime will apply to 10% of ONGC's current gas production.
The new gas pricing regime will apply to 20-25% of production in 2-3 years.
The brokerage expects ONGC's gas price realisations could rise from $6.5 to $7.5 per million metric British thermal unit.

Also Read: ONGC Secures Government Approval For Rs 10,501 Crore Equity Infusion In Petro Arm

Motilal Oswal On Signature Global

The brokerage has initiated coverage on the stock with a 'buy' rating.
It has a price target of Rs 2,000 per share, which implies an upside of 38% from the previous close.
The company reported 63% compounded annual growth rate in pre-sales over FY21-24.
It is expected to clock pre-sales CAGR of 35% over FY24-27.
Strong 30 msf project pipeline to be launched in next two years.
The brokerage expects cumulative OCF of Rs 9,500 crore over FY25-27 and that leaves ample room for growth.
Valuations are yet to capture future growth potential, Motilal Oswal said.

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