NSEI:ONGC

Stock Analysis Report

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

Fundamentals

Solid track record established 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


Market Performance


7 Day Return

0.2%

ONGC

4.2%

IN Oil and Gas

2.4%

IN Market


1 Year Return

-10.0%

ONGC

18.6%

IN Oil and Gas

8.0%

IN Market

Return vs Industry: ONGC underperformed the Indian Oil and Gas industry which returned 18.6% over the past year.

Return vs Market: ONGC underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

ONGCIndustryMarket
7 Day0.2%4.2%2.4%
30 Day4.1%12.0%2.5%
90 Day-1.4%9.9%3.6%
1 Year-5.6%-10.0%22.1%18.6%10.3%8.0%
3 Year-17.5%-26.6%50.5%34.9%22.3%16.0%
5 Year-35.0%-45.8%73.6%46.1%42.8%29.3%

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?

6.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ONGC (₹141.9) is trading above our estimate of fair value (₹86.97)

Significantly Below Fair Value: ONGC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ONGC is good value based on its PE Ratio (6.3x) compared to the Oil and Gas industry average (10.8x).

PE vs Market: ONGC is good value based on its PE Ratio (6.3x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ONGC is poor value based on its PEG Ratio (12.8x)


Price to Book Ratio

PB vs Industry: ONGC is good value based on its PB Ratio (0.8x) compared to the IN Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Oil and Natural Gas forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONGC's forecast earnings growth (0.5% per year) is below the savings rate (7.6%).

Earnings vs Market: ONGC's earnings (0.5% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: ONGC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ONGC's revenue (3.1% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: ONGC's revenue (3.1% 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 (11.9%).


Next Steps

Past Performance

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

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ONGC's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: ONGC's earnings growth over the past year (19.4%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: ONGC earnings growth over the past year (19.4%) exceeded the Oil and Gas industry 10.6%.


Return on Equity

High ROE: ONGC's Return on Equity (13.4%) is considered low.


Return on Assets

ROA vs Industry: ONGC has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: ONGC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oil and Natural Gas's financial position?


Financial Position Analysis

Short Term Liabilities: ONGC's short term assets (₹900.8B) do not cover its short term liabilities (₹1,290.3B)

Long Term Liabilities: ONGC's short term assets (900.8B) do not cover its long term liabilities (1,304.2B)


Debt to Equity History and Analysis

Debt Level: ONGC's debt to equity ratio (45.3%) is considered high

Reducing Debt: ONGC's debt to equity ratio has increased from 28.1% to 45.3% over the past 5 years.

Debt Coverage: ONGC's debt is well covered by operating cash flow (57.2%).

Interest Coverage: ONGC's interest payments on its debt are well covered by EBIT (106.9x coverage).


Balance Sheet

Inventory Level: ONGC has a high level of physical assets or inventory.

Debt Coverage by Assets: ONGC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

4.93%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%0.6%markettop25%2.4%industryaverage2.4%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ONGC's dividend (4.93%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ONGC's dividend (4.93%) is in the top 25% of dividend payers in the Indian market (2.41%)

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), ONGC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ONGC's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).


Next Steps

Management

What is the CEO of Oil and Natural Gas's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Shashi Shanker (58yo)

0yrs

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: Insufficient data to establish whether Shashi's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

1.6yrs

Average Tenure

58yo

Average Age

Experienced Management: ONGC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ONGC's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • M. E. Selvamm

    Company Secretary & Compliance Officer

    • Tenure: 2.8yrs
    • Compensation: ₹4.87m
  • S. Dhandapani

    Chief of Corporate Finance and Group General Manager

    • Tenure: 0yrs
  • Lakhi Sah (66yo)

    Chief Engineer of Production

    • Tenure: 0yrs
  • Kamal Sharma (57yo)

    Chief Manager of MM

    • Tenure: 0yrs
  • Shashi Shanker (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹10.12m
  • Subhash Kumar (57yo)

    CFO, Director of Finance & Director

    • Tenure: 1.1yrs
    • Compensation: ₹6.85m
  • Rajesh Kakkar (58yo)

    Director of Offshore & Director

    • Tenure: 1.7yrs
    • Compensation: ₹8.74m
  • Sanjay Moitra

    Director of Onshore & Director

    • Tenure: 1.5yrs
    • Compensation: ₹8.74m
  • Alka Mittal (57yo)

    Director of Human Resources & Director

    • Tenure: 0.9yrs
    • Compensation: ₹6.48m
  • Navin Pandey (59yo)

    Director of Technical & Field Services and Additional Director

    • Tenure: 1yrs
    • Compensation: ₹7.25m

Board Members

  • Shashi Shanker (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹10.12m
  • Shireesh Kedare (56yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹900.00k
  • Kodundhirapully Padmanabhan (62yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹910.00k
  • Santrupt Misra (54yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹620.00k
  • Subhash Kumar (57yo)

    CFO, Director of Finance & Director

    • Tenure: 1.1yrs
    • Compensation: ₹6.85m
  • Rajesh Kakkar (58yo)

    Director of Offshore & Director

    • Tenure: 1.7yrs
    • Compensation: ₹8.74m
  • Sanjay Moitra

    Director of Onshore & Director

    • Tenure: 1.5yrs
    • Compensation: ₹8.74m
  • Alka Mittal (57yo)

    Director of Human Resources & Director

    • Tenure: 0.9yrs
    • Compensation: ₹6.48m
  • Navin Pandey (59yo)

    Director of Technical & Field Services and Additional Director

    • Tenure: 1yrs
    • Compensation: ₹7.25m
  • Rajesh Srivastava

    Director of Exploration & Director

    • Tenure: 0.2yrs

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: ₹1.815t
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:43
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.