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Check Before You Invest : Oil & Natural Gas Corporation Ltd

BSE: 500312 NSE: ONGC ISIN: INE213A01029
  |   Sector:  Oil & Gas   |   Industry:  Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Oil & Natural Gas Corporation Ltd belong to?
Oil & Natural Gas Corporation Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.
Q.2 Is Oil & Natural Gas Corporation Ltd a good quality company?
Oil & Natural Gas Corporation Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Oil & Natural Gas Corporation Ltd undervalued or overvalued?
Oil & Natural Gas Corporation Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Oil & Natural Gas Corporation Ltd a good buy now?
Oil & Natural Gas Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd revenue growth is 3.2% for FY-2025 , which is below its 5 year CAGR of 6.8% , indicating slower growth.
Q.2 Gross Profit margin of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 51.6% for FY-2025 , which is in line with its 5 year median of 51.6% , indicating stable margins.
Q.3 Operating Profit Margin of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.7% for FY-2025 , which is below its 5 year median of 37.33% indicating decreasing margins.
Q.4 Net Profit Margin of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Net Profit Margin is 26.6% for FY-2025 , is below with its 5 year median of 27.75%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 51.6 51.6
Operating Profit Margin 34.7 37.33
Net Profit Margin 26.6 27.75
Q.5 Return on Asset of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Return on Asset is 7.93%, which is below its 5 year historical median of 9.93%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Return on equity is 11.45% for FY-2025 , which is below its historical median of 14.32%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Return on capital employed is 16.13% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Cash conversion cycle is 29 days, above its historical median of 20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.31 0.34
ROE 11.45 14.32
ROCE 16.13 18.74
Cash Conversion Cycle 29 days 20 days
Q.9 Debt to Equity ratio of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Debt-to-Equity ratio is 0.03 , which is in line with the industry average of 0.03 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Oil & Natural Gas Corporation Ltd?
Oil & Natural Gas Corporation Ltd Debt to cash flow from operations is 0.12 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Oil & Natural Gas Corporation Ltd?
Promoters hold 58.89% of the Oil & Natural Gas Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Oil & Natural Gas Corporation Ltd vs industry peers?
Oil & Natural Gas Corporation Ltd revenue CAGR is 6.84% , compared to the industry median CAGR of 6.84% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,33,862.7 1,29,741.5
Gross Profit 69,073.3 68,892.5
Operating Profit 45,687 45,687
Net Profit 35,610 40,097
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.31 0.34
ROE 11.45 14.32
ROCE 16.13 18.74
Cash Conversion Cycle (days) 28.65 20

Valuation & price assessment

Q.1 Stock return of Oil & Natural Gas Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.2% 21.6% 21.2% 16.9%
Q.3 Valuation ratios of Oil & Natural Gas Corporation Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.88 12.97 11.98
Price to Book 1.03 0.53 1.32
Price to Sales 2.7 1.23 3.25
EV to EBITDA 4.52 2.98 7.77

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