⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ONGC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ONGC | Market Cap | 3,33,252 Cr. | Current Price | 265 ₹ | High / Low | 293 ₹ |
| Stock P/E | 10.2 | Book Value | 267 ₹ | Dividend Yield | 4.62 % | ROCE | 14.8 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 264 ₹ | DMA 200 | 252 ₹ |
| Chg in FII Hold | 0.45 % | Chg in DII Hold | -0.27 % | PAT Qtr | 8,372 Cr. | PAT Prev Qtr | 9,848 Cr. |
| RSI | 45.8 | MACD | -0.05 | Volume | 90,27,484 | Avg Vol 1Wk | 1,79,20,811 |
| Low price | 205 ₹ | High price | 293 ₹ | PEG Ratio | -2.49 | Debt to equity | 0.10 |
| 52w Index | 67.9 % | Qtr Profit Var | 1.60 % | EPS | 26.0 ₹ | Industry PE | 23.3 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT at ₹8,372 Cr. vs ₹9,848 Cr. shows slight decline, but overall profitability remains strong. ROE (11.4%) and ROCE (14.8%) indicate healthy efficiency.
- Debt & Liquidity: Debt-to-equity at 0.10 reflects very low leverage, ensuring strong balance sheet and cash flow stability.
- Valuation: P/E of 10.2 is significantly below industry average (23.3), suggesting undervaluation. P/B ~0.99 is fair, and dividend yield of 4.62% adds investor appeal. PEG ratio (-2.49) indicates limited growth prospects.
- Technical Indicators: RSI at 45.8 shows neutral momentum; MACD at -0.05 is flat. Current price ₹265 is near DMA 50 (₹264) and above DMA 200 (₹252), showing stability.
🏢 Business Model & Competitive Advantage
- ONGC is India’s largest oil & gas exploration and production company, with integrated operations across upstream, midstream, and downstream segments.
- Competitive advantage lies in scale, government backing, and strategic importance in India’s energy security.
💡 Entry Zone Recommendation
- Entry zone: ₹250–₹265, close to intrinsic value and technical support levels.
- Attractive for long-term investors given strong fundamentals and high dividend yield.
📈 Long-Term Holding Guidance
- Suitable for long-term holding due to undervaluation, strong cash flows, and consistent dividends.
- Upside potential tied to global crude price trends and domestic energy demand.
✅ Positive
- Strong ROE (11.4%) and ROCE (14.8%).
- Low debt-to-equity ratio (0.10).
- Attractive dividend yield (4.62%).
- P/E (10.2) well below industry average (23.3), indicating undervaluation.
⚠️ Limitation
- Quarterly PAT declined from ₹9,848 Cr. to ₹8,372 Cr.
- PEG ratio (-2.49) signals weak growth prospects.
- High dependence on global crude price volatility.
📉 Company Negative News
- Recent profit decline quarter-on-quarter.
- DII holdings reduced (-0.27%).
📈 Company Positive News
- FII holdings increased (+0.45%).
- Strong dividend payout supports investor confidence.
- Stable technicals with price above DMA 200.
🏭 Industry
- Oil & gas industry P/E at 23.3, much higher than ONGC’s valuation.
- Sector growth tied to global energy demand and crude price cycles.
🔎 Conclusion
- ONGC is fundamentally strong with low debt, high dividend yield, and undervaluation compared to peers.
- Entry near ₹250–₹265 is attractive for long-term investors; recommended as a stable holding with consistent returns.