Oil & Natural Gas Corp. Ltd. (ONGC) AI Stock Analysis

• Market Cap: ₹2.99T
• Dividend Yield: 5.68%
• Average Volume (3M): 503.09K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.02
• Revenue Growth: 1.94%
• EPS Growth: -18.38%
• Country: IN
• Employees: 25,847
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Integrated
• EPS (TTM): 6.38
• Shares Outstanding: 12,580,279,000
• 10 Day Avg. Volume: 395,461
• 30 Day Avg. Volume: 503,092
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹297.38
• Price Target Upside: 24.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: ₹271.00 ▲(13.75% Upside)

Oil & Natural Gas Corp. Ltd. maintains a solid financial performance with strong revenue growth and efficient operations. The stock is attractively valued with a low P/E ratio and a high dividend yield, making it appealing to value and income investors. However, technical indicators suggest bearish momentum, which could weigh on the stock in the near term. Improving cash flow management and asset utilization could further enhance the company's financial standing.

Oil & Natural Gas Corp. Ltd. Business Overview & Revenue Model

Company Description

Oil & Natural Gas Corp. Ltd. (ONGC) is a state-owned enterprise based in India, primarily engaged in the exploration and production of oil and natural gas. It is one of the largest oil and gas companies in India and operates in multiple sectors including upstream, midstream, and downstream activities. ONGC's core products include crude oil, natural gas, and various petroleum products. The company is also involved in refining, petrochemicals, and power generation through its subsidiaries.

How the Company Makes Money

ONGC makes money primarily through the exploration, development, and production of crude oil and natural gas, which it sells domestically and internationally. The company generates revenue from the sale of these hydrocarbons to refineries and other entities that process them into usable products like gasoline, diesel, and other petrochemicals. ONGC's key revenue streams include sales from its domestic and international oil and gas exploration and production activities. Additionally, the company benefits from strategic partnerships and joint ventures, both within India and globally, which help expand its exploration and production capabilities. ONGC also earns revenue through its subsidiaries in refining, petrochemicals, and power generation, providing a diversified income base. The company's earnings are significantly influenced by global oil and gas prices, government policies, and its ability to efficiently manage and expand its reserves.

Oil & Natural Gas Corp. Ltd. Financial Statement Overview

Summary

Oil & Natural Gas Corp. Ltd. demonstrates strong revenue growth and efficient operations with a gross profit margin of 35.69%. However, the net profit margin has slightly declined. The balance sheet is stable with a debt-to-equity ratio of 0.55, though asset utilization could improve. Cash flow management poses challenges with a negative free cash flow growth rate.

Income Statement

Oil & Natural Gas Corp. Ltd. has shown strong revenue growth with a 12.13% increase from last year and a consistent rise over the past few years. The gross profit margin stands at 35.69%, indicating healthy profitability. Although the net profit margin has declined to 5.46% from the previous year, it remains within industry standards. EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.55, suggesting reasonable leverage. Return on Equity (ROE) is 10.55%, highlighting effective use of shareholder funds. The equity ratio is 45.28%, indicating a solid equity base relative to total assets, though there is room for improvement in asset utilization.

Cash Flow

Operating cash flow to net income ratio is 2.51, showing strong cash generation relative to net income. The free cash flow to net income ratio decreased, suggesting reduced cash available after capital expenditures. The free cash flow growth rate is negative, reflecting challenges in maintaining cash flows amidst increased capital spending.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.62T	6.63T	5.91T	6.30T	4.89T	3.02T
Gross Profit	2.18T	2.37T	1.26T	1.21T	1.11T	725.17B
EBITDA	833.31B	964.66B	1.16T	776.69B	855.93B	602.64B
Net Income	361.53B	362.26B	492.21B	367.09B	455.22B	163.04B
Balance Sheet
Total Assets	7.59T	7.59T	7.10T	6.18T	5.85T	5.43T
Cash, Cash Equivalents and Short-Term Investments	304.30B	304.30B	471.93B	371.09B	124.27B	124.48B
Total Debt	1.88T	1.88T	1.61T	1.50T	1.30T	1.41T
Total Liabilities	3.84T	3.84T	3.45T	3.15T	3.02T	3.01T
Stockholders Equity	3.43T	3.43T	3.37T	2.83T	2.60T	2.21T
Cash Flow
Free Cash Flow	0.00	351.92B	473.61B	351.32B	337.22B	42.01B
Operating Cash Flow	0.00	908.68B	992.63B	860.62B	782.48B	471.85B
Investing Cash Flow	0.00	-430.22B	-572.67B	-750.95B	-413.30B	-390.92B
Financing Cash Flow	0.00	-479.08B	-456.50B	-128.76B	-357.90B	-82.39B

Oil & Natural Gas Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 238.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ONGC, the sentiment is Negative. The current price of 238.25 is above the 20-day moving average (MA) of 238.04, below the 50-day MA of 242.76, and below the 200-day MA of 243.24, indicating a bearish trend. The MACD of -1.52 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ONGC.

Oil & Natural Gas Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	76 Outperform	₹1.15T	9.89		4.21%	5.40%	3.06%
ONGC	72 Outperform	₹2.99T	8.31		5.68%	1.94%	-18.38%
BPCL	68 Neutral	₹1.39T	7.92		3.13%	-1.89%	-8.61%
OIL	68 Neutral	₹663.82B	10.12		3.06%	-5.98%	-3.44%
IOC	64 Neutral	₹2.01T	11.58		2.12%	-1.95%	-45.00%
HINDPETRO	55 Neutral	₹841.77B	8.24		2.69%	-1.06%	3.34%
Sector *	45 Neutral	AU$1.31B	-11.15	-2.02%	8.53%	2.68%	-34.29%

Oil & Natural Gas Corp. Ltd. Corporate Events

ONGC, BP, and Reliance Ink Joint Operating Agreement for Saurashtra Offshore Block

ONGC, in collaboration with BP Exploration (Alpha) Ltd and Reliance Industries Limited, has signed a Joint Operating Agreement for the exploration of an offshore block in the Saurashtra Basin. This agreement, part of India’s Open Acreage Licensing Policy, aims to explore and harness hydrocarbon resources, marking a significant step towards enhancing India’s energy security and achieving long-term energy goals.