ONGC Shares Surge 139% In 2 Years: Key Factors Driving The Rise

Shares of Oil and Natural Gas Corporation (ONGC), India’s top Maharatna public sector undertaking, have experienced a remarkable 139% increase over the past two years. As of August 26, 2024, the stock has reached Rs 328.85 during intraday trading on the BSE.

Recent Stock Movement

On Monday, ONGC’s share price saw a notable boost, rising by 3% to Rs 328.85. By 1:30 PM, the stock was trading at Rs 328.25, reflecting a 2.87% gain from its previous close of Rs 319.10. The current price is just Rs 16 short of its 52-week high of Rs 344.60, recorded on August 1, 2024.

Reasons for the Price Increase

1. Approval for Additional Shares
The recent approval by the Government of India and ONGC’s board for the payment of balance call money on share warrants has led to the issuance of additional shares by ONGC Petro additions Limited (OPaL). This move reflects confidence in ONGC’s future growth prospects.

2. New Oil Production Commences
ONGC has started production at its fifth oil well in the KG-DWN-98/2 Cluster-2 block. This new development is expected to enhance the company’s production capacity and positively impact its revenue streams.

ONGC Stock Performance

Year-to-Date Growth
ONGC shares have surged by 59.76% since the start of the year, significantly outperforming the benchmark S&P BSE Sensex, which has risen by 13.10% over the same period.

Recent Gains
In the past three months, ONGC’s stock price has increased by 21.58%.

Annual Returns
Over the past year, ONGC shares have delivered an impressive return of 87.64% to its investors.

Long-Term Performance
Investors have enjoyed substantial returns over the last two years, with the share price increasing by 139.96%.

52-Week Range
The stock’s 52-week range is between Rs 172.95 and Rs 344.60, highlighting significant growth and volatility.

ONGC’s Market Capitalization

As of August 26, 2024, ONGC has a robust market capitalization of Rs 4,12,633.16 crore on the BSE and is a key constituent of the BSE 100 index.

Company Overview

ONGC is India’s largest oil and natural gas producer, responsible for about 71% of the country’s domestic production. The company is also engaged in exploration, development, and production activities across various international locations, reinforcing its position as a major global energy player.

In summary, ONGC’s recent stock performance reflects its strong growth trajectory, driven by key developments in production and strategic approvals.