Credit Suisse downdrages ONGC on earnings outlook

Credit Suisse downgraded Oil and Natural Gas Corp to 'underperform' from 'neutral', citing rising risks to earnings in fiscal 2012-13, despite noting the stock continues to trade as a discount to global peers.

The investment bank said the state-run oil explorer's earnings in the next fiscal year could be hit by a combination of lower domestic production, higher taxes, losses at subsidiary Mangalore Refiney and Petrochemicals Ltd, and a high base in the previous fiscal year.

Credit Suisse also cut its target price to Rs 239 from Rs 315 in a note dated on Tuesday.

Shares in ONGC were down 0.3 percent at Rs 273.50 as of 10:50 a.m.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture