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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500312 | NSE: ONGC

Oil & Natural Gas Corpn Ltd (ONGC): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:19 pm

Market Cap 3,11,991 Cr.
Current Price 248
High / Low345/188
Stock P/E7.49
Book Value 280
Dividend Yield4.94 %
ROCE18.4 %
ROE16.3 %
Face Value 5.00
PEG Ratio0.24

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Oil & Natural Gas Corpn Ltd (ONGC)

Competitors of Oil & Natural Gas Corpn Ltd (ONGC)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Natural Resources Ltd 211 Cr. 26.331.1/12.7 13.60.00 %1.15 %3.61 % 10.0
Dolphin Offshore Enterprises (India) Ltd 2,134 Cr. 533949/78.097.8 60.60.00 %0.97 %3.22 % 1.00
Deep Energy Resources Ltd 999 Cr. 312348/150694 1210.00 %0.39 %0.35 % 10.0
Selan Explorations Technology Ltd 1,316 Cr. 8661,100/40422.8 2860.00 %12.3 %8.70 % 10.0
Oil India Ltd 78,964 Cr. 485768/1959.42 3242.16 %17.7 %18.0 % 10.0
Industry Average34,254.75 Cr566.2693.96582.840.90%9.77%8.68%6.58

All Competitor Stocks of Oil & Natural Gas Corpn Ltd (ONGC)

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales100,289114,124108,105122,066145,673155,949182,894168,656169,213164,067163,824146,874165,569
Expenses89,00998,63991,822104,270124,306131,900164,041155,311147,346144,593133,717118,618145,545
Operating Profit11,27915,48516,28317,79621,36724,04918,85313,34621,86719,47430,10728,25520,024
OPM %11%14%15%15%15%15%10%8%13%12%18%19%12%
Other Income2,3796,8831,7751,9132,8826071,6192,3152,807-4,7833,0693,2334,130
Interest1,1581,1161,4401,3771,3881,4911,6401,9932,1882,0682,3642,6032,544
Depreciation6,4957,5726,4236,2306,8507,3806,6114,4436,7846,7197,0726,6987,094
Profit before tax6,00613,68110,19412,10216,01115,78412,2219,22415,7025,90423,74022,18714,516
Tax %39%20%33%-55%27%24%30%26%26%3%27%25%26%
Net Profit3,63710,9636,84718,74911,63712,0618,5816,83011,6655,70117,38316,55310,748
EPS in Rs2.007.524.7614.358.698.399.496.609.132.9511.2310.928.23

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales140,147161,984174,121160,923124,036282,506322,706421,624396,728303,849491,246632,291640,333
Expenses94,797118,482124,991118,61084,901229,702265,817346,805344,623254,375411,373556,764542,473
Operating Profit45,35043,50149,13042,31239,13552,80456,88974,81952,10549,47379,87475,52797,860
OPM %32%27%28%26%32%19%18%18%13%16%16%12%15%
Other Income11,0755,4887,1705,9551,06712,72410,4299,56798211,2716,797-305,650
Interest4354846242,8643,7663,5914,9995,8377,4895,0795,6967,8899,580
Depreciation13,18711,76316,26218,03316,38420,21923,11223,70426,63525,53826,88324,55727,584
Profit before tax42,80436,74239,41327,37020,05241,71839,20854,84618,96230,12654,09143,05166,347
Tax %34%35%32%35%35%30%34%38%40%29%9%24%
Net Profit28,42823,99426,66517,70313,10229,16926,06833,93811,45621,36049,29432,77850,386
EPS in Rs21.9318.8720.6514.2910.0319.0317.2324.288.5912.9636.1928.1733.33
Dividend Payout %30%34%31%44%56%40%38%29%58%28%29%40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-15.60%11.13%-33.61%-25.99%122.63%-10.63%30.19%-66.24%86.45%130.78%-33.51%
Change in YoY Net Profit Growth (%)0.00%26.73%-44.74%7.62%148.62%-133.26%40.82%-96.43%152.70%44.32%-164.28%

Oil & Natural Gas Corpn Ltd (ONGC) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:7%
3 Years:25%
TTM:2%
Compounded Profit Growth
10 Years:7%
5 Years:10%
3 Years:47%
TTM:-14%
Stock Price CAGR
10 Years:0%
5 Years:13%
3 Years:18%
1 Year:27%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:17%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:04 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital4,2784,2784,2784,2786,4176,4176,2906,2906,2906,2906,2906,290
Reserves148,250167,874176,177193,536187,969197,602210,644198,814214,691253,213274,357330,780
Borrowings20,68649,11353,94445,50080,029106,550107,742129,473133,187121,986142,255153,181
Other Liabilities80,211103,711103,44898,459170,111148,664167,667173,787187,580201,771190,212219,523
Total Liabilities253,424324,976337,847341,772444,525459,232492,343508,364541,748583,260613,115709,774
Fixed Assets49,10464,65588,92846,38581,51082,97086,011103,848104,466111,050119,836153,801
CWIP53,38572,03463,39357,66859,04261,51269,05683,832100,309106,719113,945116,022
Investments2,1284,7464,74933,38770,74667,33566,90956,75560,32066,64278,873102,207
Other Assets148,807183,541180,776204,332233,227247,416270,367263,929276,653298,848300,461337,744
Total Assets253,424324,976337,847341,772444,525459,232492,343508,364541,748583,260613,115709,774

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +39,87453,27033,95046,29245,78056,79261,45870,59347,18578,24886,06299,263
Cash from Investing Activity +-41,220-63,633-30,058-38,256-43,815-66,798-37,132-53,159-39,141-41,197-74,690-57,203
Cash from Financing Activity +-6,92715,225-10,641-8,972-1,8679,909-23,324-16,726-8,239-35,790-12,876-45,650
Net Cash Flow-8,2734,862-6,749-93599-971,001708-1951,261-1,504-3,591

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow45.0023.000.00-11.00-6.00-28.00-50.00-33.00-77.00-84.00-42.00-67.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days35344325161613819141112
Inventory Days8079651056556484685906186
Days Payable1121551752905148413151664661
Cash Conversion Cycle3-43-67-1613024212354392738
Working Capital Days-1-29-18-46-57-9-2-203-6-9-6
ROCE %23%20%13%13%17%14%19%10%9%16%14%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters60.41%58.91%58.89%58.89%58.89%58.89%58.89%58.89%58.89%58.89%58.89%58.89%
FIIs8.87%9.91%9.97%8.96%8.43%7.97%8.11%8.38%9.20%8.88%8.57%8.12%
DIIs17.19%16.36%17.83%18.53%19.27%19.87%19.84%19.58%18.73%18.88%18.75%19.04%
Government0.00%0.00%0.00%10.30%10.30%10.30%10.30%10.30%10.30%10.30%10.30%10.30%
Public13.53%14.82%13.31%3.32%3.10%2.94%2.87%2.83%2.89%3.05%3.50%3.65%
No. of Shareholders13,38,16013,62,79414,69,27316,58,80415,82,15315,48,72615,23,40615,13,38315,88,56417,90,07421,41,47927,88,153

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF238,366,54017.646389.427,700,0002024-11-202995.67%
HDFC Flexi Cap Fund - Regular Plan24,000,0001.27643.327,700,0002024-11-20211.69%
HDFC Top 100 Fund - Regular Plan10,501,9200.87281.57,700,0002024-11-2036.39%
Aditya Birla Sun Life PSU Equity Fund9,850,8607.76264.057,700,0002024-11-2027.93%
HDFC Balanced Advantage Fund - Regular Plan9,824,3500.33263.347,700,0002024-11-2027.59%
Nippon India ETF Nifty 50 BeES9,388,1611.06251.657,700,0002024-11-2021.92%
Aditya Birla Sun Life ELSS Tax Saver Fund8,450,0001.51226.57,700,0002024-11-209.74%
Nippon India Value Fund7,700,0002.9206.47,700,0002024-11-200%
HDFC ELSS Tax Saver Fund7,000,0001.34187.647,700,0002024-11-20-9.09%
HDFC Arbitrage Fund - Regular Plan6,691,3001.65179.367,700,0002024-11-20-13.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)39.1328.1736.1912.928.59
Diluted EPS (Rs.)39.1328.1736.1912.928.59
Cash EPS (Rs.)69.1048.5360.0336.4629.54
Book Value[Excl.RevalReserv]/Share (Rs.)290.21239.47225.22192.84177.67
Book Value[Incl.RevalReserv]/Share (Rs.)290.21239.47225.22192.84177.67
Revenue From Operations / Share (Rs.)470.14502.63390.51241.65315.38
PBDIT / Share (Rs.)94.2169.4370.0546.7348.63
PBIT / Share (Rs.)68.5946.9348.0326.4327.46
PBT / Share (Rs.)59.1934.1941.8323.1214.33
Net Profit / Share (Rs.)43.4826.0338.0216.168.36
NP After MI And SOA / Share (Rs.)39.1328.1736.1912.928.59
PBDIT Margin (%)20.0313.8117.9319.3315.42
PBIT Margin (%)14.599.3312.3010.938.70
PBT Margin (%)12.596.8010.719.564.54
Net Profit Margin (%)9.245.179.736.682.65
NP After MI And SOA Margin (%)8.325.609.265.342.72
Return on Networth / Equity (%)14.6012.6217.547.355.26
Return on Capital Employeed (%)15.4312.2413.197.918.97
Return On Assets (%)6.935.767.772.992.11
Long Term Debt / Equity (X)0.230.350.330.350.35
Total Debt / Equity (X)0.350.460.410.490.50
Asset Turnover Ratio (%)0.890.300.250.160.24
Current Ratio (X)0.880.860.830.750.64
Quick Ratio (X)0.530.520.400.390.38
Inventory Turnover Ratio (X)3.590.120.120.320.34
Dividend Payout Ratio (NP) (%)26.1949.6925.1414.0667.09
Dividend Payout Ratio (CP) (%)15.8327.6315.635.4619.36
Earning Retention Ratio (%)73.8150.3174.8685.9432.91
Cash Earning Retention Ratio (%)84.1772.3784.3794.5480.64
Interest Coverage Ratio (X)11.6311.0715.4711.578.17
Interest Coverage Ratio (Post Tax) (X)6.536.189.774.823.61
Enterprise Value (Cr.)448048.83310615.17330950.56252750.74199126.22
EV / Net Operating Revenue (X)0.750.490.670.830.50
EV / EBITDA (X)3.783.563.764.303.25
MarketCap / Net Operating Revenue (X)0.560.300.410.420.21
Retention Ratios (%)73.8050.3074.8585.9332.90
Price / BV (X)0.990.670.790.580.41
Price / Net Operating Revenue (X)0.560.300.410.420.21
EarningsYield0.140.180.220.120.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Oil & Natural Gas Corpn Ltd (ONGC) as of November 21, 2024 is: 358.73

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Oil & Natural Gas Corpn Ltd (ONGC) is Undervalued by 44.65% compared to the current share price 248.00

Intrinsic Value of Oil & Natural Gas Corpn Ltd (ONGC) as of November 21, 2024 is: 470.47

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Oil & Natural Gas Corpn Ltd (ONGC) is Undervalued by 89.71% compared to the current share price 248.00

Last 5 Year EPS CAGR: 31.15%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -16.67, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -1.00, which is a positive sign.
  4. The company has higher reserves (212,825.58 cr) compared to borrowings (95,303.83 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (326.62 cr) and profit (39.15 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Oil & Natural Gas Corpn Ltd (ONGC):
      1. Net Profit Margin: 9.24%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 15.43% (Industry Average ROCE: 8.96%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 14.6% (Industry Average ROE: 7.95%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 6.53
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.53
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 7.49 (Industry average Stock P/E: 78.3)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.35
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Oil And Natural Gas Corporation Ltd. is a Public Limited Listed company incorporated on 23/06/1993 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1993GOI054155 and registration number is 054155. Currently Company is involved in the business activities of Extraction of crude petroleum. Company’s Total Operating Revenue is Rs. 110318.87 Cr. and Equity Capital is Rs. 6290.14 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Oil Drilling And ExplorationPlot No. 5A- 5B, Nelson Mandela Road, New Delhi Delhi 110070secretariat@ongc.co.in
    https://ongcindia.com
    Management
    NamePosition Held
    Mr. Arun Kumar SinghChairman & CEO
    Mr. V C TongaonkarDirector - Finance & CFO
    Mr. Manish PatilDirector - Human Resources
    Mr. Om Prakash SinghDirector
    Ms. Sushma RawatDirector
    Mr. Pankaj KumarDirector
    Mr. Syamchand GhoshIndependent Director
    Mr. V Ajit Kumar RajuIndependent Director
    Mr. Manish PareekIndependent Director
    Mrs. Reena JaitlyIndependent Director
    Dr. Prabhaskar RaiIndependent Director
    Dr. Madhav SinghIndependent Director
    Mr. Praveen Mal KhanoojaGovernment Nominee Director

    FAQ

    What is the latest intrinsic value of Oil & Natural Gas Corpn Ltd (ONGC)?

    The latest intrinsic value of Oil & Natural Gas Corpn Ltd (ONGC) as on 21 November 2024 is ₹358.73, which is 44.65% higher than the current market price of ₹248.00.

    What is the Market Cap of Oil & Natural Gas Corpn Ltd (ONGC)?

    The Market Cap of Oil & Natural Gas Corpn Ltd (ONGC) is 3,11,991 Cr..

    What is the current Stock Price of Oil & Natural Gas Corpn Ltd (ONGC) as on 21 November 2024?

    The current stock price of Oil & Natural Gas Corpn Ltd (ONGC) as on 21 November 2024 is ₹248.

    What is the High / Low of Oil & Natural Gas Corpn Ltd (ONGC) stocks in FY 2024?

    In FY 2024, the High / Low of Oil & Natural Gas Corpn Ltd (ONGC) stocks is 345/188.

    What is the Stock P/E of Oil & Natural Gas Corpn Ltd (ONGC)?

    The Stock P/E of Oil & Natural Gas Corpn Ltd (ONGC) is 7.49.

    What is the Book Value of Oil & Natural Gas Corpn Ltd (ONGC)?

    The Book Value of Oil & Natural Gas Corpn Ltd (ONGC) is 280.

    What is the Dividend Yield of Oil & Natural Gas Corpn Ltd (ONGC)?

    The Dividend Yield of Oil & Natural Gas Corpn Ltd (ONGC) is 4.94 %.

    What is the ROCE of Oil & Natural Gas Corpn Ltd (ONGC)?

    The ROCE of Oil & Natural Gas Corpn Ltd (ONGC) is 18.4 %.

    What is the ROE of Oil & Natural Gas Corpn Ltd (ONGC)?

    The ROE of Oil & Natural Gas Corpn Ltd (ONGC) is 16.3 %.

    What is the Face Value of Oil & Natural Gas Corpn Ltd (ONGC)?

    The Face Value of Oil & Natural Gas Corpn Ltd (ONGC) is 5.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Oil & Natural Gas Corpn Ltd (ONGC). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE