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ONGC Share Price Today: Shares of Oil and Natural Gas Corporation (ONGC) have come into focus after multiple brokerage firms flagged near-term production catalysts and an improving dividend outlook, even as views remain divided on capital allocation and crude price risks. The stock was trading near Rs 271, as investors weighed the potential impact of higher gas output over the next few months.

Global brokerage Jefferies maintained its Buy rating on ONGC and raised its target price to Rs 325 from Rs 310, citing improving operational visibility and stable earnings performance. The brokerage said ONGC’s latest quarterly results were broadly in line with expectations, with EBITDA and profit tracking estimates despite pressure from softer crude prices.

Jefferies highlighted that the next 60 to 120 days could be critical for ONGC, with multiple production projects expected to start contributing to output.

Brokerage views on ONGC are divided. Jefferies has reiterated a Buy rating and raised its target to Rs 325, citing strong gas production visibility and steady earnings. CLSA is also bullish, with a Buy call and a Rs 315 target, driven by expectations of a higher dividend payout of nearly 50 per cent. On the contrary, Citi maintains a Sell rating, despite lifting its target to Rs 245, while Nomura remains Neutral with a Rs 260 target, flagging crude price volatility and capital allocation risks.

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ONGC has indicated that gas production from the Eastern Offshore fields and the Daman project is expected to commence shortly. According to the company, these projects are likely to support a more than 15 per cent increase in domestic gas production by the end of FY27.

In addition, output from the Mumbai High field has begun to improve following the execution of a service contract with BP. The company has also guided for a gradual ramp-up in production from the Krishna-Godavari Basin, which is nearing higher utilisation levels.

Based on these developments, Jefferies expects ONGC’s overall production to grow at a compound annual growth rate of around 5 per cent between FY26 and FY28, while earnings per share are projected to rise at a 9 per cent CAGR over the same period.

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Brokerage firm CLSA noted that ONGC’s dividend payout could rise to around 50 per cent, supported by steady operating cash flows. The brokerage said such a payout would place ONGC near the upper end of its historical dividend range, making the stock attractive for income-focused investors.

Also, ONGC has reaffirmed its intent to maintain capital expenditure at current levels to make sure timely execution of growth projects. The company is also looking at evaluating investments in the additional refining capacity, a step that experts believe could put strain on capital efficiency.