Retain ‘sell’ on ONGC with unchanged FV of Rs 60

ONGC’s 2QFY21 results were well ahead of our expectations boosted by higher value-added-products sales volumes, higher realisations, reduction in other expenses and favourable movement in below-Ebitda items. We align FY2021E EPS for strong performance of ONGC and its subsidiaries, while broadly retaining FY2022-23 estimates. ‘Sell’ stays with unchanged FV of Rs 60. Potential recovery in global oil prices or deregulation of domestic gas prices are key risks to our negative stance.