Stock 360: Crude in $55-65/bbl range is best for ONGC

Oil and Natural Gas Corporation (ONGC) stock, which has been all over the place, is up 5 percent today and for the week it’s up 7 percent and for this month of February it’s up 18 percent.

However, this is where the good part ends and legacy issues takeover. In the past one year the stock has been flat, past 3-years it's down about 40 percent and past 7 years it's down 60 percent.

One of the key reasons of late is that some buying is seen because of dividend point of view. It is the stock, which is at its recent lows, offered about 8-10 dividend yield, pays about Rs 6 per share, trades at historical low valuations and anecdotally does best when crude is between $55 per bbl and $65 per bbl because then they have best of both worlds.