ScoreWhy is Oil & Natural Gas Corporation Ltd. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.69 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 11.63%
3
Flat results in Jun 26
- PBT LESS OI(Q) At Rs 3,752.11 cr has Fallen at -73.1% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 5.43 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 30.08 times
4
With ROCE of 12.9, it has a Very Attractive valuation with a 0.8 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 -1.48%, its profits have risen by 19.9% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 5.8
5
High Institutional Holdings at 37.61%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
With its market cap of Rs 2,92,491 cr, it is the second biggest company in the sector (behind Reliance Industr)and constitutes 11.56% of the entire sector
- Its annual Sales of Rs 704,122.81 are 18.08% of the industry
Real-Time Research ReportHow much should you hold?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
ONGC
-1.16%
-0.06
23.71%
Sensex
-9.49%
-0.72
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.63%
EBIT Growth (5y)
12.38%
EBIT to Interest (avg)
5.94
Debt to EBITDA (avg)
1.92
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
1.28
Tax Ratio
24.24%
Dividend Payout Ratio
42.54%
Pledged Shares
0
Institutional Holding
37.61%
ROCE (avg)
12.46%
ROE (avg)
14.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
14
Price to Book Value
0.79
EV to EBIT
7.82
EV to EBITDA
4.66
EV to Capital Employed
0.84
EV to Sales
0.61
PEG Ratio
0.34
Dividend Yield
5.81%
ROCE (Latest)
12.88%
ROE (Latest)
11.23%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.47 times
NET SALES(Q)
Highest at Rs 204,987.35 cr
PAT(Q)
Highest at Rs 11,457.98 cr.
EPS(Q)
Highest at Rs 9.46
-12What is not working for the Company
PBT LESS OI(Q)
At Rs 3,752.11 cr has Fallen at -73.1% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 5.43 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 30.08 times
PBDIT(Q)
Lowest at Rs 15,485.35 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 7.55%
NON-OPERATING INCOME(Q)
is 42.63 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for ONGC
Net Sales - Quarterly
Highest at Rs 204,987.35 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 204,987.35 cr has Grown at 23.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 165,560.45 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 11,457.98 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 9.46
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.47 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for ONGC
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3,752.11 cr has Fallen at -73.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 13,947.30 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 5.43 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 15,485.35 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 7.55%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 3,752.11 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 42.63 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 30.08 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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