Motilal Oswal Securities has maintained 'Buy' on Oil & Natural Gas Corporation (ONGC) with target price of Rs 385 as against current market price (CMP) of Rs 315 in its report.

Commenting on the investment rationale, the stock broker said, ''We met ONGC to get an update on operational outlook as well as ongoing policy reforms. Management continues to remain upbeat on scheduled gas price hike as well as ongoing diesel reforms and likelihood of subsidy reduction.

Ongoing diesel reforms (under-recoveries set to halve by FY16), proposed gas price hike (from Apr.01, 2014) and >4% CAGR (FY14-16E) in group production over the next two years are key positives, in our view.

If ONGC's expectation of full gas price pass-through materializes, our base case EPS CAGR (FY14-16E) of 13% could reach 21%. Maintain Buy; our SOTP-based target price of Rs 385 implies 22% upside.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.