Check Before You Invest : Oil & Natural Gas Corporation Ltd

Q: 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: 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 multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Oil & Natural Gas Corporation Ltd undervalued or overvalued?

Oil & Natural Gas Corporation Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 10.75, Historic Median: 7.92. Price to Book, Current: 1.02, Historic Median: 0.89. Price to Sales, Current: 2.67, Historic Median: 2.18. EV to EBITDA, Current: 4.46, Historic Median: 3.89

Q: 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

Q: 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 6.84%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Oil & Natural Gas Corporation Ltd?

Oil & Natural Gas Corporation Ltd Net Profit Margin is 26.6% for FY-2025, is in line with its 5-year median of 27.75%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 51.6, Historic Median: 51.6. Operating Profit Margin (%), Current: 34.7, Historic Median: 37.33. Net Profit Margin (%), Current: 26.6, Historic Median: 27.75

Q: 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: 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 below its 5-year historical median of 18.74%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Oil & Natural Gas Corporation Ltd undervalued or overvalued?

Oil & Natural Gas Corporation Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	10.75	7.92
Price to Book	1.02	0.89
Price to Sales	2.67	2.18
EV to EBITDA	4.46	3.89

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 6.84%, 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 in line with its 5-year median of 27.75%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	51.6	51.6
Operating Profit Margin (%)	34.7	37.33
Net Profit Margin (%)	26.6	27.75

B: Does the business utilize capital efficiently?

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 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 below its 5-year historical median of 18.74%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 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 5-year historical median of 14.32%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Oil & Natural Gas Corporation Ltd?

Oil & Natural Gas Corporation Ltd Cash conversion cycle is 29 days, above its 5-year historical median of 20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.31	0.34
ROE (%)	11.45	14.32
ROCE (%)	16.13	18.74
Cash Conversion Cycle	29 days	20 days

C: How much debt does the business have and is it at a sustainable level?

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 lower the industry average of 0.07, indicating lower 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

D: Promoter shareholding and pledge status of Oil & Natural Gas Corporation Ltd?

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)

E: How does Oil & Natural Gas Corporation Ltd performance compare with that of its Peers?

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 stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.2	6.8
Gross Profit Growth (%)	-3.3	10.1
Operating Profit Growth (%)	-5.1	10.9
Net Profit Growth (%)	-12.1	21.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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 7.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	7.4%	18.8%	18.7%	19%

Q.2 Valuation ratios of Oil & Natural Gas Corporation Ltd vs historical?

The current P/E ratio of 10.75 is higher than its historical median of 7.92, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.75	7.92	22.52
Price to Book	1.02	0.89	1.33
Price to Sales	2.67	2.18	4.32
EV to EBITDA	4.46	3.89	7.69

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Check Before You Invest : Oil & Natural Gas Corporation Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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