ONGC Faces Valuation Disparity Amidst Broader Oil Sector Trends and Challenges

Jun 05 2025 09:20 AM IST
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Oil & Natural Gas Corporation (ONGC) has shown activity in line with the oil sector, experiencing a slight increase recently. Despite this, it trades below key moving averages and has faced a 4% decline over the past year. The company boasts a high dividend yield of 5.79%.
Oil & Natural Gas Corporation (ONGC) has shown notable activity today, aligning its performance with the broader oil sector. The stock has experienced a slight increase of 0.36% over the past two days, indicating a modest upward trend. However, it is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a potential challenge in maintaining momentum.

With a market capitalization of Rs 2,99,033.24 crore, ONGC is classified as a large-cap company. The stock's price-to-earnings (P/E) ratio stands at 8.23, significantly lower than the industry average of 18.94, highlighting a potential valuation disparity within the sector.

Despite the recent gains, ONGC's performance over the past year has been less favorable, with a decline of 4.00%, contrasting sharply with the Sensex's growth of 8.89% during the same period. In the oil exploration and refineries sector, out of 19 stocks that have declared results, only 7 reported positive outcomes. ONGC's high dividend yield of 5.79% remains a notable feature, providing a steady income stream for shareholders amidst fluctuating stock performance.
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