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ONGC

Oil and Natural Gas NSEI:ONGC Stock Report

Last Price

₹133.90

Market Cap

₹1.7t

7D

9.3%

1Y

-20.3%

Updated

05 Oct, 2022

Data

Company Financials +
ONGC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends5/6

ONGC Stock Overview

Oil and Natural Gas Corporation Limited explores for, develops, and produces crude oil and natural gas in India and internationally.

Oil and Natural Gas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Oil and Natural Gas
Historical stock prices
Current Share Price₹133.90
52 Week High₹194.95
52 Week Low₹119.85
Beta0.95
1 Month Change0.37%
3 Month Change8.42%
1 Year Change-20.35%
3 Year Change6.40%
5 Year Change-20.84%
Change since IPO151.06%

Recent News & Updates

Shareholder Returns

ONGCIN Oil and GasIN Market
7D9.3%3.9%2.0%
1Y-20.3%-8.2%-0.7%

Return vs Industry: ONGC underperformed the Indian Oil and Gas industry which returned -9.3% over the past year.

Return vs Market: ONGC underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is ONGC's price volatile compared to industry and market?
ONGC volatility
ONGC Average Weekly Movement4.1%
Oil and Gas Industry Average Movement4.8%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

Stable Share Price: ONGC is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ONGC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199327,165Vivek Tongaonkarhttps://www.ongcindia.com

Oil and Natural Gas Corporation Limited explores for, develops, and produces crude oil and natural gas in India and internationally. It operates through two segments, Exploration and Production, and Refining & Marketing. The company also engages in the refining and marketing of petroleum products; transportation of oil and natural gas; and production of liquefied petroleum gas, butane, ethane/propane, naphtha, kerosene oil, low sulphur heavy stock, aviation turbine fuel, mineral turpentine oil, carbon credits, and diesel.

Oil and Natural Gas Fundamentals Summary

How do Oil and Natural Gas's earnings and revenue compare to its market cap?
ONGC fundamental statistics
Market Cap₹1.68t
Earnings (TTM)₹514.74b
Revenue (TTM)₹5.66t

3.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ONGC income statement (TTM)
Revenue₹5.66t
Cost of Revenue₹4.53t
Gross Profit₹1.13t
Other Expenses₹616.53b
Earnings₹514.74b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)40.92
Gross Margin19.98%
Net Profit Margin9.09%
Debt/Equity Ratio45.8%

How did ONGC perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ONGC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ONGC?

Other financial metrics that can be useful for relative valuation.

ONGC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA3.6x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does ONGC's PE Ratio compare to its peers?

ONGC PE Ratio vs Peers
The above table shows the PE ratio for ONGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.2x
COALINDIA Coal India
6x-9.2%₹1.4t
IOC Indian Oil
5x3.3%₹926.8b
BPCL Bharat Petroleum
29.1x31.5%₹675.6b
PETRONET Petronet LNG
8.7x11.4%₹305.0b
ONGC Oil and Natural Gas
3.3x-7.0%₹1.7t

Price-To-Earnings vs Peers: ONGC is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does ONGC's PE Ratio compare vs other companies in the IN Oil and Gas Industry?

Price-To-Earnings vs Industry: ONGC is good value based on its Price-To-Earnings Ratio (3.3x) compared to the Indian Oil and Gas industry average (17.7x)


Price to Earnings Ratio vs Fair Ratio

What is ONGC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ONGC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio6.8x

Price-To-Earnings vs Fair Ratio: ONGC is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).


Share Price vs Fair Value

What is the Fair Price of ONGC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONGC (₹133.9) is trading below our estimate of fair value (₹186.19)

Significantly Below Fair Value: ONGC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Oil and Natural Gas forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-7.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONGC's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: ONGC's earnings are forecast to decline over the next 3 years (-7% per year).

High Growth Earnings: ONGC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ONGC's revenue is expected to decline over the next 3 years (-10% per year).

High Growth Revenue: ONGC's revenue is forecast to decline over the next 3 years (-10% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONGC's Return on Equity is forecast to be low in 3 years time (14.8%).


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Past Performance

How has Oil and Natural Gas performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ONGC has high quality earnings.

Growing Profit Margin: ONGC's current net profit margins (9.1%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: ONGC's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: ONGC's earnings growth over the past year (132.7%) exceeds its 5-year average (21.4% per year).

Earnings vs Industry: ONGC earnings growth over the past year (132.7%) exceeded the Oil and Gas industry 59.3%.


Return on Equity

High ROE: ONGC's Return on Equity (18%) is considered low.


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Financial Health

How is Oil and Natural Gas's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ONGC's short term assets (₹1,060.6B) do not cover its short term liabilities (₹1,274.2B).

Long Term Liabilities: ONGC's short term assets (₹1,060.6B) do not cover its long term liabilities (₹1,747.0B).


Debt to Equity History and Analysis

Debt Level: ONGC's net debt to equity ratio (41.5%) is considered high.

Reducing Debt: ONGC's debt to equity ratio has increased from 40% to 45.8% over the past 5 years.

Debt Coverage: ONGC's debt is well covered by operating cash flow (60.2%).

Interest Coverage: ONGC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Oil and Natural Gas's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.84%

Current Dividend Yield

Dividend Yield vs Market

Oil and Natural Gas Dividend Yield vs Market
How does Oil and Natural Gas dividend yield compare to the market?
SegmentDividend Yield
Company (Oil and Natural Gas)7.8%
Market Bottom 25% (IN)0.4%
Market Top 25% (IN)1.6%
Industry Average (Oil and Gas)2.4%
Analyst forecast in 3 Years (Oil and Natural Gas)10.1%

Notable Dividend: ONGC's dividend (7.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: ONGC's dividend (7.84%) is in the top 25% of dividend payers in the Indian market (1.59%)


Stability and Growth of Payments

Stable Dividend: ONGC's dividend payments have been volatile in the past 10 years.

Growing Dividend: ONGC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), ONGC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39.5%), ONGC's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Vivek Tongaonkar

0.75yr

Tenure

Shri. Vivek Chandrakant Tongaonkar serves as Chief Executive Officer at Oil and Natural Gas Corporation Limited since January 01, 2022. He served as Chief Financial Officer at Oil and Natural Gas Corporati...


Leadership Team

Experienced Management: ONGC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: ONGC's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NSEI:ONGC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Apr 22Sell₹325,540,770IndiaCompany2,037,177₹159.80

Ownership Breakdown

What is the ownership structure of ONGC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders10,4280.0%
General Public1,050,545,6088.4%
Public Companies1,295,286,74410.3%
Institutions2,824,286,59322.5%
State or Government7,410,149,83358.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 73.3% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
58.89%
India
7,408,866,983₹992.0b-0.03%no data
7.84%
Indian Oil Corporation Limited
986,885,142₹132.1b0%no data
2.45%
GAIL (India) Limited
308,401,602₹41.3b0%no data
1.18%
The Vanguard Group, Inc.
148,224,746₹19.8b1.46%0.01%
1.05%
FMR LLC
131,975,109₹17.7b0%0.02%
0.61%
BlackRock, Inc.
76,891,126₹10.3b1.12%no data
0.23%
Grantham Mayo Van Otterloo & Co. LLC
29,189,638₹3.9b17.13%0.17%
0.14%
Geode Capital Management, LLC
17,383,401₹2.3b2.12%no data
0.11%
Strategic Advisers LLC
14,398,083₹1.9b-29.8%0.02%
0.074%
Kotak Mahindra Asset Management Company Limited
9,335,216₹1.2b572.78%0.09%
0.073%
Pacific Investment Management Company LLC
9,237,361₹1.2b0.15%0.07%
0.069%
Dimensional Fund Advisors LP
8,658,718₹1.2b0.85%no data
0.068%
abrdn plc
8,511,693₹1.1b-1.42%0.01%
0.065%
BNY Mellon Asset Management
8,169,026₹1.1b1.15%no data
0.053%
SEI Investments Company
6,662,579₹892.1m9.42%0.02%
0.052%
State Street Global Advisors, Inc.
6,574,930₹880.4m3.49%no data
0.052%
Janus Henderson Group plc
6,517,948₹872.8m0%0.01%
0.051%
J.P. Morgan Asset Management, Inc.
6,362,031₹851.9m-23.34%no data
0.044%
Caisse de dépôt et placement du Québec
5,484,459₹734.4m0%0.01%
0.039%
Thornburg Investment Management, Inc.
4,860,889₹650.9m0%0.06%
0.037%
Wellington Management Group LLP
4,697,477₹629.0m-0.65%no data
0.037%
AP Fonden 7
4,658,474₹623.8m0%0.01%
0.027%
Axis Asset Management Company Limited
3,357,572₹449.6m1.22%0.03%
0.024%
Russell Investment Management, LLC
2,975,599₹398.4m0%0.01%
0.024%
Tata Asset Management Limited
2,956,809₹395.9m-32.95%0.08%

Company Information

Oil and Natural Gas Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Oil and Natural Gas Corporation Limited
  • Ticker: ONGC
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Implied Market Cap: ₹1.684t
  • Shares outstanding: 12.58b
  • Website: https://www.ongcindia.com

Number of Employees


Location

  • Oil and Natural Gas Corporation Limited
  • Deendayal Urja Bhawan
  • Plot No. 5A- 5B, Nelson Mandela Road
  • New Delhi
  • Delhi
  • 110070
  • India


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500312BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1995
ONGCNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.