⚠ 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 | 3,19,928 Cr. | Current Price | 254 ₹ | High / Low | 278 ₹ |
| Stock P/E | 9.83 | Book Value | 267 ₹ | Dividend Yield | 4.82 % | ROCE | 14.8 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 245 ₹ | DMA 200 | 245 ₹ |
| Chg in FII Hold | 0.45 % | Chg in DII Hold | -0.27 % | PAT Qtr | 9,848 Cr. | PAT Prev Qtr | 8,024 Cr. |
| RSI | 55.1 | MACD | 6.18 | Volume | 1,80,71,994 | Avg Vol 1Wk | 3,85,11,873 |
| Low price | 205 ₹ | High price | 278 ₹ | PEG Ratio | -2.40 | Debt to equity | 0.10 |
| 52w Index | 67.7 % | Qtr Profit Var | -17.8 % | EPS | 25.9 ₹ | Industry PE | 19.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹9,848 Cr. vs. ₹8,024 Cr. previously, though YoY profit variation shows -17.8% decline. EPS at ₹25.9 remains strong.
- Return Metrics: ROE at 11.4% and ROCE at 14.8% indicate healthy efficiency in capital utilization.
- Debt Position: Debt-to-equity ratio at 0.10 reflects very low leverage, strong balance sheet stability.
- Cash Flow: Dividend yield of 4.82% provides attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 9.83, significantly lower than industry average of 19.0, suggesting undervaluation.
- P/B Ratio: Current Price ₹254 vs. Book Value ₹267 → ~0.95, trading below book value, attractive for value investors.
- PEG Ratio: -2.40, negative due to earnings volatility, limiting growth-adjusted valuation clarity.
- Intrinsic Value: Strong fundamentals and low valuation indicate intrinsic value higher than current price.
🏭 Business Model & Competitive Advantage
- ONGC is India’s largest oil & gas exploration and production company, with government backing and strategic importance.
- Strong upstream operations and integrated presence across energy value chain.
- Competitive advantage lies in scale, reserves, and policy support, though global crude price volatility impacts earnings.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹240–255, close to DMA levels and below book value.
- Long-Term Holding: Suitable for dividend-focused investors and those seeking exposure to energy sector; long-term returns tied to crude cycle and government policy.
Positive
- Low P/E ratio compared to industry average, indicating undervaluation.
- Strong dividend yield at 4.82%.
- Low debt-to-equity ratio (0.10), ensuring financial stability.
- FII holdings increased (+0.45%), showing foreign investor confidence.
Limitation
- Quarterly profit variation shows -17.8% decline, reflecting earnings volatility.
- PEG ratio negative (-2.40), limiting growth valuation clarity.
- Dependence on global crude oil prices makes earnings cyclical.
Company Negative News
- Decline in quarterly profit growth compared to previous year.
- DII holdings reduced (-0.27%), showing lower domestic institutional confidence.
Company Positive News
- Strong PAT in latest quarter (₹9,848 Cr.).
- Stock trading above DMA 50 and DMA 200 (₹245), showing technical strength.
- Stable dividend payout supports investor sentiment.
Industry
- Oil & Gas industry P/E at 19.0, higher than ONGC’s 9.83, highlighting undervaluation.
- Sector outlook tied to global crude prices, energy demand, and government energy policies.
Conclusion
- ONGC offers strong fundamentals, low valuation, and attractive dividend yield.
- Despite earnings volatility, its strategic importance and financial stability make it a solid long-term hold.
- Accumulation near ₹240–255 is recommended for value and dividend-focused investors.
Would you like me to also prepare a dividend reinvestment projection for ONGC so you can see potential compounding returns over the next 5–10 years?