Oil PSU Stocks to Buy: Analysts choose these 2 stocks for up to 79% potential upside; check out details

Equity benchmark indices Sensex and Nifty fell in early trade on Tuesday (March 4) amid a weak trend in the global markets, incessant foreign fund outflows, and concerns over US tariffs. The 30-share BSE Sensex declined by 177.39 points, or 0.24 per cent to 72,908.55 in early trade. The NSE Nifty dropped 59 points, or 0.27 per cent to 22,060.30.

At around 12.18 PM IST, Sensex was 0.26 per cent down at 72,893.51, while Nifty 50 was 0.25 per lower at 22,064.50.

On the other hand, the Indian currency declined 8 paise to 87.40 against the US dollar in early trade today, weighed down by persistent foreign fund outflows and a prevailing liquidity deficit.

Despite that downtrend, brokerage Antique Stock Broking has suggested buying two oil PSU stocks for a target of up to 79 per cent. 

Oil PSU stocks to buy

The analysts have picked ONGC and Oil India stocks and given a buy rating. According to them, the stocks can provide up to 80 per cent upside in the long term.

Share price target of ONGC

Today ONGC stock made a low of Rs 215 intraday. It has fallen by 38 per cent from its high. In August 2024, this stock made a high of Rs 345. Antique Broking has given a target of Rs 335 with a buy rating. This target is 49 per cent higher than its last closing price on Monday, March 3.

Shares of ONGC were trading flat at Rs 225.05 each on BSE today at around 12.21 PM.

Oil India share price target

Oil India stock made a 52-week low of Rs 328. It has fallen by about 58 per cent from its high. In August 2024, this stock made a high of Rs 767. Antique Broking has given a target of Rs 610 with a buy rating. This target is 79% higher than its last closing price on Monday, March 3.

At 12.21 PM IST, shares of Oil India were trading 1.13 per cent higher at Rs 345.3.

What do analysts say?

Analysts said, "The decision to withdraw the windfall tax is positive for upstream companies. At present, the price of crude oil is at a low level. In such a situation, even a slight price increase will be of great benefit.

"Talking about valuation, ONGC and Oil India shares are trading at a 60-70 per cent discount compared to global upstream players. Generally, these companies trade at a 30-35 per cent discount," they added.

Very cheap in terms of valuation

On the basis of valuation metrics, the price of ONGC share (based on March 3 closing) is based on the rate of crude oil of $53 per barrel, while the price of Oil India share (based on the March 3 closing) is based on the rate of crude oil of $42 per barrel. Both stocks are trading at a very cheap price. ONGC shares are trading at a multiple of 2.1x, and Oil India shares are trading at a multiple of 1.1x over FY27 estimated EV/EBITDA.