Axis Capital rates ONGC 'Sell', sees 14% drop on output, oil prices, debt

• Axis Capital initiated a "sell" rating on ONGC, projecting a 14% decline to a target price of ₹205 per share.
• Reasons for the "sell" rating include continued production decline from aging fields despite BP's intervention.
• A muted outlook for oil prices is expected to reduce ONGC's standalone profit after tax by 20% over FY25-27.
• High debt in key subsidiaries, ONGC Videsh and ONGC Petro additions Ltd., will likely require parental support from ONGC.
• ONGC shares declined over 3% following Axis Capital's coverage initiation.

Why It Matters: ONGC stock faces a predicted 14% drop, signaling risk for investors.