Oil and Natural Gas Corporation Limited (ONGC) is an Indian state-owned oil and natural gas company. It is the largest oil and gas producer in India, accounting for about 70% of the country’s crude oil production and about 84% of its natural gas production.
ONGC Overview
| Company | Oil and Natural Gas Corporation Limited (ONGC) |
|---|---|
| Founded | 14 August 1956 |
| Headquarters | New Delhi, India |
| Industry | Oil and gas |
| Products | Crude oil, natural gas |
| Operations | India and 16 other countries |
| Employees | 130,000 |
| Revenue | ₹304,352 crore (US$42 billion) (2021-22) |
| Profit | ₹12,445 crore (US$1.7 billion) (2021-22) |
ONGC Products
| Product | Description |
|---|---|
| Crude oil | A naturally occurring, flammable liquid hydrocarbon found in geological formations beneath the Earth’s surface. It is the raw material for many petroleum products, including gasoline, diesel fuel, heating oil, and asphalt. |
| Natural gas | A naturally occurring flammable gas mixture consisting primarily of methane, along with smaller amounts of other hydrocarbons, such as ethane, propane, and butane. It is used as a fuel for heating, cooking, and power generation. |
ONGC Awards and Recognition
| Award/Recognition | Year | Organizing Body | Description |
|---|---|---|---|
| Golden Peacock Award for Risk Management | 2022 | Institute Of Directors (IOD), India | In recognition of its commitment to Risk Mitigation in its business and operations, ONGC received the Golden Peacock Award for Risk Management at the 2022 London Global Convention on Corporate Governance & Sustainability organized by the Institute Of Directors (IOD), India at House of Lords, Parliament of the United Kingdom on 9 November 2022. |
| Maharatna of the Year (Non-Manufacturing) 2020 | 2020 | Dalal Street Investment Journal | ONGC has been recognized as the ‘Maharatna of the Year (Non-Manufacturing)’ among India’s Best Public Sector Undertakings 2020 by the Dalal Street Investment Journal. |
| Fortune Global 500 List | 2023 | Fortune | ONGC ranked 4th in India and 158th globally in the Fortune Global 500 List 2023. |
| Forbes’ Global 2000 List | 2023 | Forbes | Forbes’ latest Global 2000 list has ranked ONGC as the 5th highest Indian company and 226th globally. |
| India’s Best Employers Among Nation-Builders 2023 | 2023 | Great Place to Work® Institute | Fulfilling the set of rigorous criteria stipulated by the Great Place to Work® Institute, ONGC has been certified as a Great Place to Work for the fourth year consecutively. |
ONGC Fundamentals
| Fundamental | Value |
|---|---|
| Market Capitalization | ₹3,335,524.55 crore (US$45.6 billion) |
| Revenue | ₹304,352 crore (US$42 billion) (2021-22) |
| EBITDA | ₹124,528 crore (US$17.2 billion) (2021-22) |
| EPS | ₹17.53 (US$0.24) (2021-22) |
| P/E Ratio | 12.68 |
| P/B Ratio | 1.73 |
| Dividend Yield | 2.14% |
| Debt/Equity Ratio | 0.56 |
| Book Value | ₹101.13 (US$1.40) |
| Face Value | ₹10 |
| ROE | 20.43% |
ONGC Revenue and Net Profit
| Year | Revenue | Net Profit |
|---|---|---|
| 2021-22 | ₹304,352 crore (US$42 billion) | ₹12,445 crore (US$1.7 billion) |
| 2020-21 | ₹239,306 crore (US$32.9 billion) | ₹9,993 crore (US$1.4 billion) |
| 2019-20 | ₹221,021 crore (US$30.4 billion) | ₹11,415 crore (US$1.6 billion) |
| 2018-19 | ₹200,508 crore (US$27.6 billion) | ₹10,539 crore (US$1.5 billion) |
| 2017-18 | ₹177,539 crore (US$24.4 billion) | ₹8,034 crore (US$1.1 billion) |
ONGC Shareholding Patterns
| Shareholding Category | Percentage of Shares Held |
|---|---|
| Promoter Group | 58.89% |
| Public | 41.11% |
| FIIs/FPIs | 8.38% |
| DIIs | 11.79% |
| Mutual Funds | 7.32% |
| Banks | 3.14% |
| Insurance Companies | 1.24% |
| Others | 8.13% |
ONGC Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Share Price Target Range (₹) |
|---|---|
| 2024 | 180-220 |
| 2025 | 220-280 |
| 2026 | 260-340 |
| 2027 | 300-380 |
| 2028 | 350-440 |
ONGC Share Price Target for 2024
ONGC’s share price target for 2024 is expected to range from ₹180 to ₹220.
ONGC Share Price Target for 2025
ONGC’s share price target for 2025 is expected to range from ₹220 to ₹280.
ONGC Share Price Target for 2026
ONGC’s share price target for 2026 is expected to range from ₹260 to ₹340.
ONGC Share Price Target for 2027
Based on current trends and analyst estimates, ONGC’s share price target for 2027 is expected to range from ₹300 to ₹380.
ONGC Share Price Target for 2028
Based on current trends and analyst estimates, ONGC’s share price target for 2028 is expected to range from ₹350 to ₹440.
ONGC Dividend History
| Year | Dividend per Share (₹) |
|---|---|
| 2022 | 17.53 |
| 2021 | 9.10 |
| 2020 | 5.00 |
| 2019 | 7.25 |
| 2018 | 6.00 |
Future Outlook of ONGC
ONGC, the largest oil and gas producer in India, is poised for a promising future driven by several factors, including:
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Rising Energy Demand: India’s energy consumption is expected to grow significantly in the coming years due to population growth, economic expansion, and urbanization. This increasing demand for energy will create a strong market for ONGC’s oil and gas products.
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Exploration and Production Expansion: ONGC is actively expanding its exploration and production activities both domestically and internationally. This expansion will lead to the discovery and development of new oil and gas reserves, boosting the company’s production capacity and revenue.
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Diversification into Refineries and Petrochemicals: ONGC is strategically diversifying its business by investing in refineries and petrochemical projects. This diversification will reduce the company’s reliance on crude oil prices and provide a more stable revenue stream.
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Focus on Sustainability and Green Energy: ONGC is committed to sustainability and is investing in renewable energy projects, such as solar and wind power. This focus on sustainability will enhance the company’s reputation and attract environmentally conscious investors.
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Favorable Government Policies: The Indian government is supportive of the oil and gas sector and is implementing policies that encourage exploration and production activities. These favorable policies will create a conducive environment for ONGC’s growth.
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Risks Associated With Investing in ONGC
| Risk Factor | Description | Potential Impact on ONGC |
|---|---|---|
| Oil and gas price volatility | The price of oil and gas can fluctuate significantly due to a variety of factors, including supply and demand, geopolitical events, and economic conditions. These fluctuations can have a material impact on ONGC’s revenue and profitability. | A decline in oil and gas prices could lead to a decrease in ONGC’s revenue and profitability. |
| Exploration and production risks | ONGC’s exploration and production activities are subject to a number of risks, including geological risks, environmental risks, and regulatory risks. These risks could lead to delays, cost overruns, or even the failure of a project. | A failure to discover or produce oil and gas could have a significant negative impact on ONGC’s financial position. |
| Refining and marketing risks | ONGC’s refining and marketing activities are subject to a number of risks, including product demand risks, refining margin risks, and competition risks. These risks could lead to a decrease in ONGC’s revenue and profitability. | A decline in refining margins or a decrease in product demand could have a significant negative impact on ONGC’s financial position. |
| Counterparty credit risk | ONGC is exposed to counterparty credit risk when it sells oil and gas to customers or when it purchases goods and services from suppliers. A default by a counterparty could lead to a financial loss for ONGC. | A default by a major counterparty could have a significant negative impact on ONGC’s financial position. |
| Environmental risks | ONGC’s operations are subject to a number of environmental risks, including the risk of oil spills, the risk of groundwater contamination, and the risk of climate change. These risks could lead to fines, penalties, and remediation costs. | A significant environmental incident could have a significant negative impact on ONGC’s financial position and reputation. |
| Regulatory risks | ONGC is subject to a number of regulations, including environmental regulations, health and safety regulations, and labor regulations. Changes to these regulations could increase ONGC’s costs or reduce its operating flexibility. | Unfavorable changes to regulations could have a significant negative impact on ONGC’s financial position. |
ONGC Competitors
| Rank | Competitor | Market Cap (USD) | Revenue (USD) | Profit (USD) | Headquarters | Industry |
|---|---|---|---|---|---|---|
| 1 | Reliance Industries | 213.83B | 101.9B | 14.2B | Mumbai, India | Energy |
| 2 | Petronas | 94.54B | 104.4B | 11.0B | Kuala Lumpur, Malaysia | Energy |
| 3 | Hindustan Petroleum Corporation Limited (HPCL) | 31.46B | 32.8B | 1.6B | Mumbai, India | Petroleum |
| 4 | IndianOil | 35.29B | 54.5B | 2.0B | Mumbai, India | Petroleum |
| 5 | Oil India | 16.64B | 15.4B | 1.3B | New Delhi, India | Petroleum |
ONGC Share Price FAQs
What is the ONGC share price history?
ONGC share price has a 52-week range of ₹139.20 to ₹203.40. Over the past year, the share price has increased by 36.9%.
What is the future outlook for ONGC share price?
Analysts are generally bullish on ONGC share price. The consensus estimate is that the share price will reach ₹220.00 by the end of 2023.
DISCLAMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
