Stock market analyst Avinash Gorakshekhar is of the view that investors can buy Oil and Natural Gas Corporation Limited (ONGC) stock for medium term.

According to analyst, the investors can buy the stock with target of Rs 1380.

Today, the shares of the company opened at Rs1185 the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 1273.50 and a low of Rs 976 on BSE.

Current EPS & P/E ratio stood at 78.39 and 14.90 respectively.

Positive regulatory regulations are set to unshackle Oil and Natural Gas Corporation (ONGC), which is making big investments in order to build its future.

ONGC's investments in E&P business, aside from new business sections like petrochemicals and power, are ready to bring it back to the positive path. Considering its constancy, firm growth outlooks and strong dividends, ONGC looks attractive for investors.

For the fourth quarter ended March2010, the company posted a 71% growth in net profit at Rs 37.76 billion as against Rs 22.06 billion in the quarter ended March 2009.

In the fourth quarter, ONGC received $51.42 per barrel of crude oil sold against $43.40 in the year ago period.

The Chairman and Managing Director, R. S. Sharma stated that the administration's plan to raise the gas price to $4.20 per mmBtu will add Rs 55 billion to ONGC's topline and Rs 35 billion to the bottomline.

Net sales for the quarter grew by 7% to Rs 147.13 billion.

The ONGC directors announced a payout of Rs 33 a share (including interim dividend of Rs 18 a share) aggregating to Rs 70.58 billion.