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 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.

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 

• 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

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

[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
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

[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

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.

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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