ONGC gains on eyeing stake in UK-based firm

ONGC rose 0.97% to Rs 857.50 at 10:15 IST on BSE on reports the company may possibly buy an equity interest in the UK-based Imperial Energy Corporation.

The stock hit a high of Rs 870 and a low of Rs 839 so far during the day. The stock had a 52-week high of Rs 1386.90 on 2 November 2007 and a 52-week low of Rs 770 on 17 August 2007.

India’s largest state-run oil exploration firm by market capitalisation has an equity capital of Rs 2138.87 crore. Face value per share is Rs 10.

The current price of Rs 857.50 discounts its Q4 March 2008 annualised EPS of Rs 49.13, by a

PE multiple of 17.45.

Imperial Energy Corporation is a $20-million British company with oil-producing assets in the Tomsk region of western Siberia of Russia and north-central Kazakhstan. The London Stock Exchange-listed oil and gas exploration and production company currently produces 10,000 barrels per day of oil.

If ONGC manages to strike a deal with Imperial Energy, it will strengthen the ONGC's overseas presence.

ONGC's net profit rose 2% to Rs 2627.10 crore on a 26% rise in sales to Rs 15626.07 crore in Q4 March 2008 over Q4 March 2007.

ONGC operates in oil & gas exploration, production and refining.