Stock in government-run Oil & Natural Gas Corp (ONGC) gained more than 2 per cent in early trade on Tuesday, thanks to the company's better-than-expected net profit for the October to December quarter.

The company's profit slipped 17 per cent year-on-year to Rs 5563 crore in the three months to December 31, but it was in line with analysts' expectations.

Moreover, the profit in the October to December quarter of last fiscal was higher because of extra-ordinary income. The company had received Rs 3,142 crore in one-time exceptional income from cost recovery on royalty it paid on Cairn India's Rajasthan-based oil block.

Commenting on the results, ET said, "The market is unlikely to treat the results as a negative surprise as ONGC's profits last year were bloated by extra-ordinary income."

At 09:40 in the morning, ONGC shares were trading 2.3 per cent higher at Rs 315.65 apiece.

Jefferies maintained a 'buy' rating on ONGC stock and also upped its price target from Rs 302 to Rs 360 a share. The brokerage is of the view that the risk reward is still very constructive for ONGC.

The list of other brokerages that maintain a 'buy' rating on the stock includes UBS, BofA-ML, Goldman Sachs and Citigroup. UBS and BofA-ML and Goldman Sachs have a target price of Rs 400, Rs 381 and Rs 350 for the stock, while Citigroup has a target price of Rs 377.