ONGC stock: Maintain ‘buy’ with target price of Rs 190

2QFY20 net sales were down 12% Y-o-Y to Rs 245 bn (in-line), primarily due to lower crude oil realisation at $60.3/bbl (v/s $73.1/bbl in 2QFY19). EBIDTA was down 16% Y-o-Y to Rs 133 bn (in-line). During the quarter, other expenditure was at $6.4/boe (v/s $7.1/boe in 2QFY19).

DD&A was at $10/bbl in 2QFY20 v/s 7.6/bbl in 2QFY19. Dry well cost was 21% higher Y-o-Y due to write-backs, majorly from Mumbai and KG offshores. PBT was 2% higher than estimated at Rs 90.4b (-29% YoY), with higher other income offsetting higher depreciation and interest cost.