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Oil & Natural Gas Corpn Ltd

NSE: ONGC BSE: 500312

274.95

(3.91%)

Mon, 23 Feb 2026, 08:12 pm

Oil & Natural Gas Corpn Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.4x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
  • Oil and Natural Gas's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Oil and Natural Gas's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

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    Cons

    • Cash flow for Oil and Natural Gas is expected to decrease over the next 2 years.
    • Oil and Natural Gas's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
    • Oil and Natural Gas's earnings growth is positive but not above the India market average.
    • Oil and Natural Gas's earnings growth is positive but not above the low risk savings rate of 7.2%.
    • Oil and Natural Gas's earnings are expected to decrease over the next year.
    • Oil and Natural Gas's earnings are expected to increase but not above the low risk growth rate in 3 years time
    • Oil and Natural Gas's net income is expected to decrease over the next 2 years.
    • Oil and Natural Gas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Oil and Gas industry average.
    • A decline in Oil and Natural Gas's performance (ROE) is expected over the next 3 years.
    • Oil and Natural Gas's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Oil and Natural Gas's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
    • Oil and Natural Gas's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Oil and Natural Gas is profitable, therefore cash runway is not a concern.
    • Oil and Natural Gas is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (63.6%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1x debt.
    • Interest payments on debt are well covered by earnings (EBIT is 43.1x coverage).
    • Oil and Natural Gas's level of debt (38.9%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • Oil and Natural Gas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Oil and Natural Gas's long term commitments exceed its cash and other short term assets.
    • The level of debt compared to net worth has increased over the past 5 years (28.8% vs 38.9% today).
    • High level of physical assets or inventory.

    management

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    Pros

    • Shashi's remuneration is lower than average for companies of similar size in India.
    • Shashi's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Oil and Natural Gas management team is about average.
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    Cons

    • The average tenure for the Oil and Natural Gas board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Oil and Natural Gas has significant price volatility in the past 3 months.

      past

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      Pros

      • Oil and Natural Gas's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
      • Oil and Natural Gas has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Oil and Natural Gas's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Oil and Natural Gas used its assets less efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
      • Oil and Natural Gas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Oil and Natural Gas's 1-year earnings growth is negative, it can't be compared to the IN Oil and Gas industry average.

      value

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      Pros

      • Oil and Natural Gas's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Oil and Natural Gas is good value based on assets compared to the IN Oil and Gas industry average.
      • Oil and Natural Gas is good value based on earnings compared to the IN Oil and Gas industry average.
      • Oil and Natural Gas is good value based on earnings compared to the India market.
      • NSEI:ONGC is up 10.2% along with the Oil and Gas industry (10.5%) over the past month.
      • NSEI:ONGC is up 10.2% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Oil and Natural Gas's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • Oil and Natural Gas is poor value based on expected growth next year.
      • ONGC underperformed the Oil and Gas industry which returned -4% over the past year.
      • ONGC underperformed the Market in India which returned -14.5% over the past year.

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