Oil and Natural Gas Corporation Limited

NSEI:ONGC Stock Report

Market Cap: ₹3.2t

Oil and Natural Gas 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

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹248) is trading below our estimate of fair value (₹415.31)

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

Key Valuation Metric

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

Key metric: As ONGC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ONGC. This is calculated by dividing ONGC's market cap by their current earnings.
What is ONGC's PE Ratio?
PE Ratio7.6x
Earnings₹410.94b
Market Cap₹3.15t

Price to Earnings Ratio vs Peers

How does ONGC's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.3x
COALINDIA Coal India
7x5.7%₹2.5t
IOC Indian Oil
10.5x18.3%₹1.8t
BPCL Bharat Petroleum
9.5x3.5%₹1.3t
HINDPETRO Hindustan Petroleum
18.4x30.3%₹781.5b
ONGC Oil and Natural Gas
7.6x10.3%₹3.2t

Price-To-Earnings vs Peers: ONGC is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
533704 Essar Shipping
1.6xn/aUS$88.75m
No more companies available in this PE range
ONGC 7.6xIndustry Avg. 21.3xNo. of Companies4PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ONGC is good value based on its Price-To-Earnings Ratio (7.6x) compared to the Indian Oil and Gas industry average (21.3x).

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 Ratio7.6x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: ONGC is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).

Analyst Price Targets

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

The above table shows the analyst ONGC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹248.00
₹312.55
+26.0%
17.4%₹430.00₹215.00n/a29
Nov ’25₹271.75
₹325.64
+19.8%
17.4%₹430.00₹225.00n/a28
Oct ’25₹291.95
₹325.79
+11.6%
17.1%₹430.00₹225.00n/a29
Sep ’25₹330.75
₹317.65
-4.0%
20.4%₹430.00₹162.00n/a31
Aug ’25₹341.75
₹290.10
-15.1%
19.2%₹390.00₹162.00n/a30
Jul ’25₹272.95
₹286.23
+4.9%
18.5%₹390.00₹162.00n/a30
Jun ’25₹264.35
₹277.45
+5.0%
20.1%₹390.00₹162.00n/a31
May ’25₹282.85
₹263.63
-6.8%
21.8%₹390.00₹140.00n/a30
Apr ’25₹269.90
₹258.24
-4.3%
20.4%₹344.00₹140.00n/a29
Mar ’25₹270.55
₹253.83
-6.2%
20.7%₹326.00₹140.00n/a29
Feb ’25₹247.65
₹218.44
-11.8%
15.8%₹270.00₹140.00n/a27
Jan ’25₹205.35
₹209.43
+2.0%
15.2%₹256.00₹140.00n/a28
Dec ’24₹194.55
₹207.00
+6.4%
15.2%₹256.00₹140.00n/a29
Nov ’24₹186.70
₹196.29
+5.1%
15.1%₹256.00₹130.00₹271.7528
Oct ’24₹191.85
₹191.37
-0.3%
14.7%₹234.00₹130.00₹291.9527
Sep ’24₹181.75
₹190.44
+4.8%
14.7%₹234.00₹130.00₹330.7527
Aug ’24₹176.70
₹185.67
+5.1%
13.9%₹230.00₹130.00₹341.7527
Jul ’24₹160.30
₹186.08
+16.1%
14.5%₹230.00₹130.00₹272.9526
Jun ’24₹153.65
₹187.32
+21.9%
14.7%₹230.00₹130.00₹264.3525
May ’24₹158.95
₹182.76
+15.0%
14.8%₹230.00₹120.00₹282.8525
Apr ’24₹151.05
₹178.78
+18.4%
12.6%₹220.00₹120.00₹269.9024
Mar ’24₹154.80
₹179.79
+16.1%
13.5%₹221.00₹120.00₹270.5525
Feb ’24₹144.25
₹175.20
+21.5%
18.0%₹225.00₹105.00₹247.6525
Jan ’24₹146.75
₹174.52
+18.9%
17.3%₹225.00₹110.00₹205.3525
Dec ’23₹140.05
₹174.28
+24.4%
17.2%₹225.00₹110.00₹194.5525
Nov ’23₹135.15
₹171.96
+27.2%
17.9%₹240.00₹105.00₹186.7023

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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