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

What is the Full Form of ONGC? ONGC Full Form :

The ONGC full form is Oil and Natural Gas Corporation LimitedIt 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 

ongc-full-form

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 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Promoters 60.41% 60.41% 60.41% 60.41% 60.41%
FIIs 7.62% 8.10% 7.69% 7.67% 8.08%
DIIs 17.87% 17.37% 17.54% 17.71% 17.48%
Public 14.10% 14.13% 14.36% 14.21% 14.03%

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

Mar 2018 Mar 2019 Mar 2020 TTM
Sales 322,706 421,624 396,753 3,03,958
Expenses 265,817 346,826 344,627 2,54,492
Operating Profit 56,889 74,797 52,125 49,466
OPM 18 18 13 16
Other Income 10,429 9,589 577 11,261
Interest 4,999 5,837 7,000 5,079
Depreciation 23,112 23,704 26,635 25,538
Profit before tax 39,208 54,846 19,068 30,110
Tax 34 38 39 29
Net Profit 22,106 30,546 10,907 16,249
*(Figures in Rs. crores)

[Read MoreHow to Read an Income Statement of a Company]

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

Mar 2019 Mar 2020 Mar 2021
Share Capital 6,290 6,290 6,290
Reserves 210,644 200,678 2,14,691
Borrowings 107,742 128,693 1,33,187
Other Liabilities 167,667 166,585 1,87,518
Total Liabilities 492,343 502,246 5,41,686
Fixed Assets 86,011 103,848 1,04,466
Cwip 69,056 83,832 1,00,332
Investments 66,909 50,640 60,022
Other Assets 270,367 263,926 2,76,867
Total Assets 492,343 502,246 5,41,686
Inventories 35,949 34,065 45,689
Trade Receivables 15,396 9,173 16,016
Cash & Bank 4,820 5,704 7,192
Loans and Advances 29,258 30,114 22,679
Trade Payables 30,557 22,968 27,449
              *(Figures in Rs. crores)

 

[Read MoreHow 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

Schemes Quantity As on
CPSE ETF 281,266 31-08-2021
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.

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.

MOS_ONGC

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)

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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