ONGC's Underperformance Highlights Valuation Discrepancies in Oil Sector

Aug 05 2025 09:20 AM IST
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Oil & Natural Gas Corporation (ONGC) is currently trading below key moving averages, reflecting underperformance in the oil sector. With a market cap of Rs 2,96,391.38 crore, it has a low P/E ratio compared to the industry average and offers a high dividend yield. Over the past year, the stock has declined, but it has seen significant long-term growth.
Oil & Natural Gas Corporation (ONGC) has shown notable activity today, aligning its performance with the broader oil sector. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a trend of underperformance relative to these benchmarks.

With a market capitalization of Rs 2,96,391.38 crore, ONGC is classified as a large-cap company within the oil industry. The stock boasts a price-to-earnings (P/E) ratio of 8.14, significantly lower than the industry average of 17.23, suggesting a potential valuation discrepancy within the sector.

In terms of dividend yield, ONGC offers a high yield of 5.86% at its current price, which may appeal to income-focused investors. Over the past year, the stock has experienced a decline of 24.04%, contrasting sharply with the Sensex's positive performance of 2.72%.

Despite recent challenges, ONGC's long-term performance remains noteworthy, with a 206.17% increase over the past five years, outpacing the Sensex's 114.79% growth during the same period.
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