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ONGC: Full Form, Subsidiaries, Latest Financials & Samco Star Ratings

Author Deepika Khude | Posted September 11, 2021

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. 

ongc full form

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. 

ONGC LOGO 

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 

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

ONGC Products 

  • Natural Gas
  • Crude Oil
  • Motor Spirit
  • Superior Kerosene Oil
  • Aromatic Rich Naptha
  • LPG (Liquefied Petroleum Gas)
  • HSD (High-Speed Diesel)
  • Ethane.

Latest Shareholding Pattern (%) of ONGC (As on 9th September 2021)

Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021
Promoters60.41%60.41%60.41%60.41%60.41%
FIIs7.62%8.10%7.69%7.67%8.08%
DIIs17.87%17.37%17.54%17.71%17.48%
Public14.10%14.13%14.36%14.21%14.03%

Latest Profit and Loss Account of ONGC (As on 9th September 2021)

Mar 2018Mar 2019Mar 2020TTM
Sales322,706421,624396,7533,03,958
Expenses265,817346,826344,6272,54,492
Operating Profit56,88974,79752,12549,466
OPM18181316
Other Income10,4299,58957711,261
Interest4,9995,8377,0005,079
Depreciation23,11223,70426,63525,538
Profit before tax39,20854,84619,06830,110
Tax34383929
Net Profit22,10630,54610,90716,249
*(Figures in Rs. crores)

[Read More: How to Read an Income Statement of a Company]

Latest Balance Sheet of ONGC (As on 9th September 2021)

Mar 2019Mar 2020Mar 2021
Share Capital6,2906,2906,290
Reserves210,644200,6782,14,691
Borrowings107,742128,6931,33,187
Other Liabilities167,667166,5851,87,518
Total Liabilities492,343502,2465,41,686
Fixed Assets86,011103,8481,04,466
Cwip69,05683,8321,00,332
Investments66,90950,64060,022
Other Assets270,367263,9262,76,867
Total Assets492,343502,2465,41,686
Inventories35,94934,06545,689
Trade Receivables15,3969,17316,016
Cash & Bank4,8205,7047,192
Loans and Advances29,25830,11422,679
Trade Payables30,55722,96827,449
              *(Figures in Rs. crores)

[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): 1,49,642Face Value (₹): 5EPS (₹): 17.69
Book Value (₹): 176Roce (%): 9.95Debt to Equity: 0.62
Stock P/E: 7.19ROE (%): 7.39Dividend Yield (%): 2.95
Revenue (Cr): 3,60,048Earnings (Cr): 41,441Cash (Cr): 7,192
Total Debt (Cr): 1,33,187Promoter’s Holdings (%): 60.41

Latest Mutual Funds Holdings & Trends of ONGC

SchemesQuantityAs on
CPSE ETF281,26631-08-2021
HDFC TOP 100 FUND – REGULAR PLAN – GROWTH13,75031-08-2021
HDFC FLEXICAP FUND – GROWTH OPTION11,60131-08-2021
ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH6,10831-08-2021
NIPPON INDIA ARBITRAGE FUND – GROWTH4,81831-08-2021
SBI CONTRA FUND – REGULAR PLAN – IDCW REINVESTMENT3,61831-08-2021
SBI LONG TERM EQUITY FUND – IDCW PAYOUT3,50931-08-2021
UTI DIVIDEND YIELD FUND – GROWTH OPTION3,36431-08-2021
AXIS QUANT FUND REGULAR GROWTH3,26531-08-2021
KOTAK EQUITY ARBITRAGE FUND – REGULAR PLAN – GROWTH3,11931-08-2021

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. 

Watch this video to know how to find undervalued stocks in the market. 

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)

PROS

  • 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.

CONS

  • 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)

CompanyPrice (Rs)Market Cap (Cr)P/EEPS (Rs)Dividend Yield (%)ROE (%)
Asian Oilfield Services Ltd143.75521110.01017.6
Jindal Drilling Industries Ltd134.538934.43.90.37-0.49
Aban Offshore Ltd44.242600-345.2200

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By Deepika Khude

The author is a Certified Financial Planner (CFP) with 5 years experience in Investment Advisory and Financial Planning. Her strength lies in simplifying complex financial concepts with real life stories and analogies. Her goal is to make common retail investors financially smart and independent.

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