Oil & Natural Gas Corporation Ltd.
NSE: ONGCOil & Natural Gas Corporation Ltd.: A 30-second snapshot
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.
P/E
7.5
Forward P/E
5.7
ROE
+12.7%
Debt / Equity
42.55
Profit Margin
+6.3%
Div. Yield
+7.5%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
54/100
News
8 headlines · 2 positive · 1 negative
Post Iran war crisis, ONGC to build India's next strategic oil reserve: India's existing reserves and why... - Moneycontrol.com
Moneycontrol.com
ONGC yet to take control of Cambay Block as Vedanta challenges govt move - ET EnergyWorld
ET EnergyWorld
Oil and Natural Gas Corporation Limited Recommends Final Dividend for the Financial Year 2025-26 - marketscreener.com
marketscreener.com
ONGC is now a 'gas-and-oil' company as output shift accelerates toward natural gas, says chairman - BusinessLine
BusinessLine
ONGC executive directors superannuate on June 1, 2026 - scanx.trade
scanx.trade
Recent context
- ·ONGC has been assigned a role in building India's next strategic oil reserve following the Iran war crisis (June 2026), representing a potential government-mandated capital deployment with as-yet-unquantified cost implications.
- ·The Vedanta-challenged Cambay Block transfer remained unresolved as of May 2026, creating uncertainty over the asset-base expansion that management had anticipated from this block.
- ·The chairman publicly characterised ONGC as a 'gas-and-oil' company (June 2026), reflecting an accelerating output shift toward natural gas — a stated strategic pivot with multi-year implications for revenue mix and capital allocation.
Strengths
- +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.
Weaknesses
- −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.
Open questions
- ?Does the 47.8% five-year earnings CAGR reflect a durable structural improvement in unit economics, or does it primarily reflect a recovery from the trough of subsidised pricing and pandemic-era demand collapse?
- ?How does ONGC's effective realisation per barrel of oil equivalent — net of cess, royalty, and any subsidy burden — compare to its reported revenue-per-unit trend over the past five years?
- ?If the strategic pivot toward natural gas accelerates as management describes, how might the capital expenditure requirements and payback periods of new gas blocks affect FCF in the next 3–5 years?
- ?What is the historical relationship between ONGC's D/E ratio and government subsidy obligations, and how has this varied across different crude-price cycles?
Peer comparison: Energy
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ONGC | Oil & Natural Gas Corporation Ltd.You're viewing | 7.5 | +12.7% | 53 |
| Industry avg | across 5 peers | 11.2 | +19.1% | 46 |
| COALINDIA | Coal India Ltd. | 9.0 | +28.1% | 77 |
| BPCL | Bharat Petroleum Corporation Ltd. | 5.1 | +28.5% | 55 |
| IOC | Indian Oil Corporation Ltd. | 4.7 | +21.0% | 49 |
| RELIANCE | Reliance Industries Ltd. | 22.0 | +9.1% | 32 |
| GAIL | GAIL (India) Ltd. | 15.1 | +8.7% | 16 |
Technical state
Current price
₹246.25
SMA 50
₹278.66
SMA 200
₹254.00
RSI (14)
28.8 (oversold)
From 52w high
-19.9%
1Y return
+2.9%
3M return
-8.5%
50-DMA
Below
200-DMA
Below
Algorithmic resistance levels
Risk flags
- mediumD/E ratio of 42.5 is anomalously elevated for a non-financial sector company; as a PSU upstream operator subject to government-administered pricing and potential subsidy obligations, a sustained crude-price decline or reinstatement of subsidy burden could materially strain debt-service capacity relative to a 6.25% profit margin.
- mediumROE of 12.7% has never exceeded 15% in any tracked year (roeYearsAbove15 = 0) and the 5-year persistence consistency score is 25/100, indicating structural difficulty sustaining returns above a typical cost of equity despite the reported 47.8% 5-year earnings CAGR, which reflects a recovery from a low base rather than compounding quality.
- mediumCurrent price of ₹246.25 is below both the 50-DMA (₹278.66) and the 200-DMA (₹254.00), with RSI at 28.76 (oversold); the stock is down 8.49% over 3 months and 19.92% below its 52-week high, with no identified support levels and three resistance levels clustered between ₹291.85 and ₹304.95.
- low5-year revenue growth of 1.9% (near-flat) limits the buffer against margin compression; any increase in royalty payments, cess, or operating cost inflation flows almost directly to net income given the thin 6.25% profit margin.
- lowA legal dispute over the Cambay Block — where Vedanta is challenging the government handover to ONGC — represents an unresolved operational and legal overhang reported as of May 2026.
- low1-year price-change data is unavailable for all five sector peers (COALINDIA, RELIANCE, BPCL, GAIL, IOC), making relative price-performance ranking within the Energy sector indeterminate from the current dataset.
Cross-section contradictions
- 5-year revenue CAGR of 1.9% is near-flat while 5-year earnings CAGR of 47.8% implies substantial margin expansion over the same period; the structural driver — cost reduction, subsidy relief, or product-mix shift — is not determinable from the available data alone.
- Trailing PE of 7.49 sits well below sector peers RELIANCE (22.0) and GAIL (15.1), yet ONGC quality score (53) is broadly comparable to BPCL (55) and higher than GAIL (16), suggesting the PE discount is not entirely explained by relative quality positioning within the peer set.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days