ONGC

Oil and Natural GasNSEI:ONGC Stock Report

Market Cap

₹1.6t

7D

4.6%

1Y

71.9%

Updated

17 Sep, 2021

Data

Company Financials +
ONGC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends4/6

ONGC 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₹127.75
52 Week High₹64.10
52 Week Low₹131.25
Beta1.06
1 Month Change12.85%
3 Month Change6.24%
1 Year Change71.94%
3 Year Change-29.19%
5 Year Change-26.45%
Change since IPO139.53%

Recent News & Updates

Aug 26
Is Oil and Natural Gas (NSE:ONGC) A Risky Investment?

Is Oil and Natural Gas (NSE:ONGC) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

ONGCIN Oil and GasIN Market
7D4.6%0.8%2.0%
1Y71.9%13.0%60.1%

Return vs Industry: ONGC exceeded the Indian Oil and Gas industry which returned 13% over the past year.

Return vs Market: ONGC exceeded the Indian Market which returned 60.1% over the past year.

Price Volatility

Is ONGC's price volatile compared to industry and market?
ONGC volatility
ONGC Beta1.06
Industry Beta0.99
Market Beta1

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

Volatility Over Time: ONGC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199328,479Subhash Kumarhttps://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, ethane/propane, naphtha, superior kerosene oil, low sulphur high stock, aviation turbine fuel, mineral turpentine oil, and high speed diesel.

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONGC (₹127.75) is trading below our estimate of fair value (₹139.28)

Significantly Below Fair Value: ONGC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ONGC is good value based on its PE Ratio (7.3x) compared to the Indian Oil and Gas industry average (15.5x).

PE vs Market: ONGC is good value based on its PE Ratio (7.3x) compared to the Indian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: ONGC is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ONGC is good value based on its PB Ratio (0.7x) compared to the IN Oil and Gas industry average (1.5x).


Future Growth

How is Oil and Natural Gas forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONGC's forecast earnings growth (7% per year) is above the savings rate (6.8%).

Earnings vs Market: ONGC's earnings (7% 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 (3.8% per year) is forecast to grow slower than the Indian market (12.6% per year).

High Growth Revenue: ONGC's revenue (3.8% 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 (11.5%).


Past Performance

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

-24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONGC has high quality earnings.

Growing Profit Margin: ONGC's current net profit margins (5.4%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: ONGC's earnings have declined by 24.9% per year over the past 5 years.

Accelerating Growth: ONGC's earnings growth over the past year (419.7%) exceeds its 5-year average (-24.9% per year).

Earnings vs Industry: ONGC earnings growth over the past year (419.7%) exceeded the Oil and Gas industry 31.3%.


Return on Equity

High ROE: ONGC's Return on Equity (11.2%) is considered low.


Financial Health

How is Oil and Natural Gas's financial position?


Financial Position Analysis

Short Term Liabilities: ONGC's short term assets (₹931.8B) do not cover its short term liabilities (₹1,232.6B).

Long Term Liabilities: ONGC's short term assets (₹931.8B) do not cover its long term liabilities (₹1,774.0B).


Debt to Equity History and Analysis

Debt Level: ONGC's debt to equity ratio (51.1%) is considered high.

Reducing Debt: ONGC's debt to equity ratio has increased from 25.5% to 51.1% over the past 5 years.

Debt Coverage: ONGC's debt is well covered by operating cash flow (38.1%).

Interest Coverage: ONGC's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ONGC's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: ONGC's dividend (2.9%) is in the top 25% of dividend payers in the Indian market (1.44%)


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 low payout ratio (20.3%), 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 (34.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Subhash Kumar (59 yo)

0.42

Tenure

₹6,130,000

Compensation

Mr. Subhash Kumar has been the Non-Executive Chairman at Mangalore Refinery and Petrochemicals Limited since April 5, 2021. Mr. Kumar has been the Chairman of ONGC Petro additions Limited since April 1, 20...


CEO Compensation Analysis

Compensation vs Market: Subhash's total compensation ($USD83.29K) is below average for companies of similar size in the Indian market ($USD1.19M).

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


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 ( 1.8 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.


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 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: ₹1.607t
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 15:34
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.