Oil & Natural Gas Corporation Ltd. (ONGC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

I O C L

C P C L

ONGC

B P C L

HPCL

MRPL

Reliance Industr

Oil India

Gulf Oil Lubric.

Veedol Corporat

Castrol India

Why is Oil & Natural Gas Corporation Ltd. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.42 times

Healthy long term growth as Net Sales has grown by an annual rate of 12.81% and Operating profit at 30.64%

Positive results in Sep 25

OPERATING PROFIT TO INTEREST(Q) Highest at 7.78 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 47,029.75 cr
PBDIT(Q) Highest at Rs 26,521.19 cr.

With ROCE of 12.6, it has a Very Attractive valuation with a 0.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.41%, its profits have fallen by -13.3%
At the current price, the company has a high dividend yield of 5.2

High Institutional Holdings at 37.23%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to ONGC should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ONGC for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ONGC

-7.43%

-0.32

23.35%

Sensex

4.78%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.81%

EBIT Growth (5y)

30.64%

EBIT to Interest (avg)

6.13

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.27

Tax Ratio

27.84%

Dividend Payout Ratio

31.31%

Pledged Shares

Institutional Holding

37.23%

ROCE (avg)

11.71%

ROE (avg)

13.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.83

EV to EBIT

6.95

EV to EBITDA

4.34

EV to Capital Employed

0.87

EV to Sales

0.65

PEG Ratio

Dividend Yield

5.16%

ROCE (Latest)

12.55%

ROE (Latest)

9.97%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.78 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 47,029.75 cr

PBDIT(Q)

Highest at Rs 26,521.19 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 16.80%

PBT LESS OI(Q)

Highest at Rs 14,176.38 cr.

PAT(Q)

Highest at Rs 10,785.02 cr.

EPS(Q)

Highest at Rs 8.57

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 31.27 times

NET SALES(Q)

Lowest at Rs 157,911.08 cr

Loading Valuation Snapshot...

Here's what is working for ONGC

Operating Profit to Interest - Quarterly

Highest at 7.78 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 26,521.19 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 16.80%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 14,176.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 14,176.38 cr has Grown at 32.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 10,684.57 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 10,785.02 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 8.57

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 47,029.75 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for ONGC

Net Sales - Quarterly

Lowest at Rs 157,911.08 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 31.27 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio