What is the Full Form of ONGC? ONGC Full Form :
The ONGC full form is Oil and Natural Gas Corporation Limited. It is the largest crude oil and natural gas company in India. It contributes to around 71% of India’s total crude oil production. It is one of the seven maharatnas of Indian CPSE.
History of ONGC
- 1955 – The department of Oil and Natural Gas was established under the Ministry of Natural Resources to improve the country’s oil and natural gas sector.
- 1956 – ONGC was restructured as a limited enterprise under the companies act.
- 1994 – ONGC became a public sector company and was renamed to Oil and Natural Gas Corporation (ONGC).
- 1997 – ONGC was recognised as a Navratna by the Government of India.
- 2002-03 ONGC Videsh Ltd. was formed as ONGC’s overseas subsidiary.
- 2010 – ONGC was conferred with Maharatna of Indian CPSE.
- In 2019-20 – ONGC was listed as India’s largest profit-making PSU.
Key Personnel at ONGC
- Mr. Subhash Kumar – Chairman & Managing Director
- Dr Alka Mittal – Director (HR)
- Mr. Rajesh Kumar Srivastava – Director (Exploration)
- Mr. Anurag Sharma – Director (Onshore)
- Mr. Om Prakash Singh – Director (T&FS)
ONGC – Subsidiaries
- HPCL: Hindustan Petroleum Corporation Ltd.
- MRPL: Mangalore Refinery and Petrochemicals Ltd.
- ONGC Videsh limited
- Petronet MHB Ltd
ONGC – Joint Ventures
- OTPC – ONGC Tripura Power Company Limited
- OPaL – ONGC Petro-additions Limited
- MSEZ – Mangalore Special Economic Zone Limited
- OMPL – ONGC Mangalore Petrochemicals Limited
- DSL – Dahej SEZ Limited
- OTBL – ONGC TERI Biotech Limited
- Natural Gas
- Crude Oil
- Motor Spirit
- Superior Kerosene Oil
- Aromatic Rich Naptha
- LPG (Liquefied Petroleum Gas)
- HSD (High-Speed Diesel)
Latest Shareholding Pattern (%) of ONGC (As on 9th September 2021)
|Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021|
Latest Profit and Loss Account of ONGC (As on 9th September 2021)
|Mar 2018||Mar 2019||Mar 2020||TTM|
|Profit before tax||39,208||54,846||19,068||30,110|
[Read More: How to Read an Income Statement of a Company]
Latest Balance Sheet of ONGC (As on 9th September 2021)
|Mar 2019||Mar 2020||Mar 2021|
|Cash & Bank||4,820||5,704||7,192|
|Loans and Advances||29,258||30,114||22,679|
[Read More: How to Read a Balance Sheet of a Company]
Latest Key Financial Ratios of ONGC (As on 9th September 2021)
|Market Cap (Cr): 1,49,642||Face Value (₹): 5||EPS (₹): 17.69|
|Book Value (₹): 176||Roce (%): 9.95||Debt to Equity: 0.62|
|Stock P/E: 7.19||ROE (%): 7.39||Dividend Yield (%): 2.95|
|Revenue (Cr): 3,60,048||Earnings (Cr): 41,441||Cash (Cr): 7,192|
|Total Debt (Cr): 1,33,187||Promoter’s Holdings (%): 60.41|
Latest Mutual Funds Holdings & Trends of ONGC
|HDFC TOP 100 FUND – REGULAR PLAN – GROWTH||13,750||31-08-2021|
|HDFC FLEXICAP FUND – GROWTH OPTION||11,601||31-08-2021|
|ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH||6,108||31-08-2021|
|NIPPON INDIA ARBITRAGE FUND – GROWTH||4,818||31-08-2021|
|SBI CONTRA FUND – REGULAR PLAN – IDCW REINVESTMENT||3,618||31-08-2021|
|SBI LONG TERM EQUITY FUND – IDCW PAYOUT||3,509||31-08-2021|
|UTI DIVIDEND YIELD FUND – GROWTH OPTION||3,364||31-08-2021|
|AXIS QUANT FUND REGULAR GROWTH||3,265||31-08-2021|
|KOTAK EQUITY ARBITRAGE FUND – REGULAR PLAN – GROWTH||3,119||31-08-2021|
Valuation Analysis of ONGC (As on 9th September 2021)
Valuation analysis helps you analyse how overvalued or undervalued a stock is using the margin of safety index.
It is the difference between the intrinsic value and the current value of a share. Intrinsic value is the true value of a share.
From the investor’s perspective –
If the market price is significantly lower than the stock’s intrinsic value, the stock has a high margin of safety. It is a buy signal.
From a seller’s point of view –
If the market price is significantly higher than the intrinsic value, it is a short sell opportunity. ONGC has a high margin of safety.
Latest Samco Stock Ratings of ONGC : 2 out of 5 Stars (As on 9th September 2021)
- Great Cash Conversion of Profits: ONGC has a great cash conversion ratio. It converts 77.73% of its operating earnings into operating cash flow. This implies a great working capital cycle and large cash flows for either funding growth or dividends. This will have a positive impact on shareholder returns.
- Low Sustainable RoE: ONGC’s sustainable return on equity is lower than the expected cost of capital. This implies that the underlying business will destruct value over a period of time due to its inability to generate superior returns on capital.
- Low Interest Coverage: ONGC has a low interest coverage ratio of 9.74 times which implies that a large portion of operating profits are getting attributed to payment of interest to debtholders. This can leave lower earnings and cash flows for equity shareholders.
- Highly Cyclical Industry: ONGC operates in a highly cyclical industry with unpredictable earnings and cash flows. This can result in high stock price volatility and impact shareholders negatively.
- Capital Intensive Business: ONGC has a low asset turnover ratio of 1.71. This has a negative impact on ROE. Also, due to low asset turnover ratio, business’s growth will need to be funded by either increasing borrowings or diluting shareholders. Both of these will have a negative impact on shareholders’ value.
- Extremely Speculative Stock: ONGC’s stock is extremely speculative in nature and can negatively impact long-term shareholders.
Competitor Analysis of ONGC (As on 9th September 2021)
|Company||Price (Rs)||Market Cap (Cr)||P/E||EPS (Rs)||Dividend Yield (%)||ROE (%)|
|Asian Oilfield Services Ltd||143.7||552||11||10.01||0||17.6|
|Jindal Drilling Industries Ltd||134.5||389||34.4||3.9||0.37||-0.49|
|Aban Offshore Ltd||44.24||260||0||-345.22||0||0|
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