Oil & Natural Gas Corpn Ltd (Q2 FY08)

CMP Rs1,250, BUY

Target price Rs1,350, Upside 8%



ä Lower subsidy burden boosts profitability

ä Increased gas production and higher crude realizations drive topline growth

ä Incremental volumes from OVL expected as projects enter the development phase.

ä Undervalued in comparison to global peers on EV/BOE. We recommend a BUY with a target price of Rs1,350.