ONGC vs RELIANCE
Side-by-side comparison of Oil & Natural Gas Corporation Ltd. and Reliance Industries Ltd.. Descriptive only — not investment advice.
Oil & Natural Gas Corporation Ltd.
Energy
Quality Score: 54/100
Reliance Industries Ltd.
Energy
Quality Score: 47/100
At a glance
| Metric | ONGC | RELIANCE |
|---|---|---|
| Quality Score | 54/100 | 47/100 |
| P/E (trailing) | 7.5 | 22.0 |
| Forward P/E | 5.7 | 18.2 |
| ROE | +12.7% | +9.1% |
| Profit margin | +6.3% | +7.6% |
| Debt-to-equity | 42.55 | 36.65 |
| Dividend yield | +7.51% | +0.46% |
| 1Y price return | +2.9% | -7.7% |
| From 52w high | -19.9% | -18.4% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.13 | 1.28 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
ONGC trades at ₹246.25, 19.9% below its 52-week high and below both the 50-DMA (₹278.66) and 200-DMA (₹254.00), against a trailing PE of 7.49 and a dividend yield of 7.51%. The company ranks 3rd of 6 in the Energy sector on PE and quality score (53/100), and carries a D/E ratio of 42.5 alongside an ROE of 12.7% that has not exceeded 15% in any tracked year.
Reliance Industries trades at ₹1,309.50, 18.4% below its 52-week high, with the price below both the 50-DMA (₹1,345) and 200-DMA (₹1,416). The company reported record FY26 revenue and a ₹1,44,271 crore capex outlay, yet the 5-year earnings CAGR stands at -12.6% even as revenue has compounded at +12.5% over the same period. D/E of 36.65 is rising, quality score ranks last among 6 Energy peers, and the recently announced Jio Platforms IPO is the dominant near-term narrative catalyst.
Pros
- ✓Dividend yield of 7.51% alongside a recommended final dividend for FY2025-26, translating to measurable income return at the current price level.
- ✓Forward PE of 5.72 is below the already-low trailing PE of 7.49, implying consensus earnings estimates ahead of the current period, and the stock trades at the lower end of the Energy sector PE range (sector span: 4.70 to 22.0).
- ✓FCF was positive in 4 of the tracked years, and the company has declared strategic intent to expand its natural gas output — framing a potential product-mix shift toward higher-margin gas volumes per management commentary from June 2026.
- ✓At a quality score of 53/100, ONGC sits above GAIL (16) and IOC (49) within the tracked peer set, and its 5-year earnings CAGR of 47.8% — while base-driven — reflects a period of meaningful income recovery.
- ✓Revenue has compounded at 12.5% annually over 5 years, with FY26 described as a record revenue year, demonstrating scale-building across the O2C, retail, and digital segments.
- ✓Forward PE of 18.23 represents a meaningful compression from the trailing PE of 21.96, implying that earnings expectations for FY27 are materially higher than the FY26 reported figure.
- ✓FCF was positive in 3 of the available tracked years, and the Jio Platforms IPO — if executed — would represent a potential capital-structure event that could alter the debt trajectory.
- ✓Mean analyst rating of 1.28 across 32 analysts (1–5 scale, lower = more constructive), reflecting constructive coverage from a large institutional sell-side base.
Cons
- ✗ROE of 12.7% has never cleared 15% in any tracked year and the 5-year persistence consistency score is 25/100, indicating returns that have not consistently covered a typical cost of equity.
- ✗D/E ratio of 42.5 is anomalously high for a non-financial company operating with a 6.25% profit margin; any structural change in pricing, subsidies, or crude-market dynamics amplifies debt-service risk.
- ✗Price is below both the 50-DMA (₹278.66) and 200-DMA (₹254.00) with RSI at 28.76; the stock is down 8.49% over 3 months, down 19.92% from its 52-week high, and no support levels have been identified in the dataset.
- ✗5-year revenue growth of 1.9% is near-flat, leaving limited revenue cushion; a legal dispute over the Cambay Block (Vedanta challenge reported May 2026) adds an unresolved operational overhang.
- ✗5-year earnings CAGR of -12.6% diverges sharply from the 12.5% revenue CAGR, indicating that interest expense and depreciation on cumulative capex of ₹1,44,271 crore in FY26 alone are absorbing operational gains before they reach net profit.
- ✗D/E of 36.65 with a confirmed rising debt trend and FCF positive in only 3 of tracked years; the debt trajectory adds refinancing and interest-burden exposure that is disproportionate relative to Energy peers.
- ✗ROE of 9.14% ranks 5th of 6 in the Energy peer group — below COALINDIA (28.12%), BPCL (28.47%), IOC (20.97%), and ONGC (12.7%) — and zero years above 15% are recorded in tracked history.
- ✗Quality score of 32 ranks last (6th of 6) in the peer group against a group high of 77 (COALINDIA); the stock also carries the highest PE (21.96) in the group without a corresponding return or quality premium.
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