Mumbai: Retail investors could subscribe to the offer for sale (OFS) of ONGC for an upside of 20-30% in a year as the company’s near-term outlook looks bright amid increasing crude prices, said analysts.
The stock with a dividend yield of 3.6% is currently trading at two times FY23 estimated EV/EBITDA, which is at a huge discount to its global peers and its own long-term average valuations. ONGC had an average dividend yield of 4.6% in the last five years.
