NSEI:ONGC

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Oil and Natural Gas

Executive Summary

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


Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Oil and Natural Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ONGC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.2%

ONGC

3.1%

IN Oil and Gas

-1.6%

IN Market


1 Year Return

-49.1%

ONGC

10.4%

IN Oil and Gas

-8.3%

IN Market

Return vs Industry: ONGC underperformed the Indian Oil and Gas industry which returned 12.6% over the past year.

Return vs Market: ONGC underperformed the Indian Market which returned -6.1% over the past year.


Shareholder returns

ONGCIndustryMarket
7 Day-6.2%3.1%-1.6%
30 Day-9.3%13.4%6.0%
90 Day1.1%43.1%17.5%
1 Year-45.0%-49.1%15.0%10.4%-6.5%-8.3%
3 Year-45.0%-53.2%45.5%30.5%-3.6%-8.1%
5 Year-49.6%-59.8%85.5%51.8%22.2%12.8%

Price Volatility Vs. Market

How volatile is Oil and Natural Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Oil and Natural Gas undervalued compared to its fair value and its price relative to the market?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONGC (₹77.35) is trading below our estimate of fair value (₹123.45)

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


Price To Earnings Ratio

PE vs Industry: ONGC is good value based on its PE Ratio (8.9x) compared to the IN Oil and Gas industry average (15.1x).

PE vs Market: ONGC is good value based on its PE Ratio (8.9x) compared to the Indian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ONGC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ONGC is good value based on its PB Ratio (0.5x) compared to the IN Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Oil and Natural Gas forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONGC's forecast earnings growth (20.1% per year) is above the savings rate (7.2%).

Earnings vs Market: ONGC's earnings (20.1% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ONGC's revenue (2.5% per year) is forecast to grow slower than the Indian market (7.5% per year).

High Growth Revenue: ONGC's revenue (2.5% per year) is forecast to grow slower than 20% 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 (10.6%).


Next Steps

Past Performance

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

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONGC has a large one-off loss of ₹90.3B impacting its March 31 2020 financial results.

Growing Profit Margin: ONGC's current net profit margins (2.6%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: ONGC's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: ONGC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ONGC had negative earnings growth (-64.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-12.3%).


Return on Equity

High ROE: ONGC's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Oil and Natural Gas's financial position?


Financial Position Analysis

Short Term Liabilities: ONGC's short term assets (₹807.2B) do not cover its short term liabilities (₹1,176.6B).

Long Term Liabilities: ONGC's short term assets (₹807.2B) do not cover its long term liabilities (₹1,614.6B).


Debt to Equity History and Analysis

Debt Level: ONGC's debt to equity ratio (46.1%) is considered high.

Reducing Debt: ONGC's debt to equity ratio has increased from 29.1% to 46.1% over the past 5 years.

Debt Coverage: ONGC's debt is well covered by operating cash flow (69.1%).

Interest Coverage: ONGC's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ONGC's dividend (6.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: ONGC's dividend (6.46%) is in the top 25% of dividend payers in the Indian market (2.75%)


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), ONGC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ONGC's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Shashi Shanker (59yo)

no data

Tenure

₹10,120,000

Compensation

Mr. Shashi Shanker has been a Non-Executive Director of Petronet LNG Limited since October 17, 2017. He serves as the Chairman of the Board at ONGC Petro additions Limited since October 11, 2017. He serves ...


CEO Compensation Analysis

Compensation vs Market: Shashi's total compensation ($USD134.66K) is below average for companies of similar size in the Indian market ($USD819.53K).

Compensation vs Earnings: Shashi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shashi Shanker
Chairmanno data₹10.12m0.000040% 389.2k
Subhash Kumar
CFO, Director of Finance & Director1.83yrs₹6.85mno data
M. E. Selvamm
Company Secretary & Compliance Officer3.5yrs₹4.87mno data
Alka Mittal
Director of Human Resources & Director1.67yrs₹6.48m0.000080% 778.5k
Rajesh Kakkar
Director of Offshore & Director2.42yrs₹8.74m0.000040% 389.2k
S. Dhandapani
Chief of Corporate Finance and Group General Managerno datano datano data
Om Singh
Director of Technical & Field Services and Additional Director0.25yrno datano data
Lakhi Sah
Chief Engineer of Productionno datano datano data
Kamal Sharma
Chief Manager of MMno datano datano data
Sunil Jain
Chief Engineer of Drillingno datano datano data
Vijay Agarwal
Additional Chief Medical Officerno datano datano data
Sanjay Kumar
Chief Manager of Fire Services - Rajahmundryno datano datano data

2.4yrs

Average Tenure

59yo

Average Age

Experienced Management: ONGC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shashi Shanker
Chairmanno data₹10.12m0.000040% 389.2k
Subhash Kumar
CFO, Director of Finance & Director1.83yrs₹6.85mno data
Alka Mittal
Director of Human Resources & Director1.67yrs₹6.48m0.000080% 778.5k
Rajesh Kakkar
Director of Offshore & Director2.42yrs₹8.74m0.000040% 389.2k
Om Singh
Director of Technical & Field Services and Additional Director0.25yrno datano data
Rajesh Srivastava
Director of Exploration & Director0.92yrno datano data
Anurag Sharma
Director0.083yrno datano data
Rajesh Aggarwal
Government Nominee Director0.33yrno datano data
Amar Nath
Government Nominee Director4.08yrsno datano data
Ganga Murthy
Independent Director2.83yrs₹870.00kno data
Amitava Bhattacharyya
Independent Director1yrno datano data

1.7yrs

Average Tenure

58yo

Average Age

Experienced Board: ONGC's board of directors are not considered experienced ( 1.7 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

Ownership Breakdown

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


Top Shareholders

Company Information

Oil and Natural Gas Corporation Limited's company bio, 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
  • Market Cap: ₹973.085b
  • Shares outstanding: 12.58b
  • Website: https://www.ongcindia.com

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

Biography

Oil and Natural Gas Corporation Limited explores for, develops, and produces crude oil and natural gas in India and internationally. It operates through Exploration and Production, and Refining & Marketing segments. The company is also involved in the refining and marketing of petroleum products; transportation of oil and natural gas; and production of liquefied petroleum gas, naphtha, superior kerosene oil, low sulphur high stock, aviation turbine fuel, ethane/propane, high speed diesel, and petrochemicals. It also generates electric power through 726 megawatts (MW) gas based power project in Tripura; operates a 51 megawatts (MW) wind power project in Surajbari, Gujarat; and 102 MW wind power project in Rajasthan, as well as generates solar power through a total installed capacity of 23 MW. The company was incorporated in 1993 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 12:34
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.