{"id":49089,"date":"2024-12-14T22:00:00","date_gmt":"2024-12-14T16:30:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=49089"},"modified":"2024-12-24T11:36:53","modified_gmt":"2024-12-24T06:06:53","slug":"ongc-share-price-analysis-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/ongc-share-price-analysis-all-you-need-to-know\/","title":{"rendered":"ONGC Fundamental Analysis: All You Need to Know"},"content":{"rendered":"
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Want to understand the fundamental analysis<\/a> of ONGC? Read on. ONGC is a leading oil exploration company in India but is struggling in the stock market<\/a>. In the last 10 years, its share price has returned 1% annually to investors, but it is currently trading below its book value. So, can ONGC’s share price turn around and grow multi-fold? What is its future growth potential?<\/p>\n\n\n\n

This article looks into the fundamentals of ONGC’s share price. <\/p>\n\n\n\n

What Does ONGC Do?<\/h2>\n\n\n\n

Oil and Natural Gas Corporation (ONGC) is India\u2019s largest oil & gas exploration and production company with Maharatna status. The company is responsible for over 70% of India\u2019s crude oil and 84% of natural gas production. <\/p>\n\n\n\n

ONGC also has a strong international presence through its subsidiary, ONGC Videsh, which has projects in multiple countries. Through its subsidiaries, ONGC is present across all the value chains of hydrocarbons, including marketing, refinery, LNG, fuel transportation, etc. ONGC holds a 54.9% stake in Hindustan Petroleum. <\/p>\n\n\n\n

ONGC Management Team<\/h2>\n\n\n\n

Mr. Arun Kumar Singh<\/strong> is the Chairman and CEO of ONGC and the ONGC group of companies. He assumed his role on 7 December 2022 and has a three-year tenure. Mr. Singh has over 37 years of experience in the oil and gas sector and was previously the CMD of Bharat Petroleum. <\/span><\/p>\n\n\n\n

Mr. Om Prakash Singh <\/strong>is the Director (Technology & Field Services) and a mechanical engineer. He has over 36 years of experience in Indian oil and gas exploration and is an expert in deepwater drilling projects in India and abroad. Mr. Singh also chairs various Boards of ONGC subsidiaries. <\/span><\/p>\n\n\n\n

Mr. Pankaj Kumar <\/strong>is the Director (Production) and has over 36 years of experience across ONGC\u2019s business functions. He holds a B.Tech in Chemical Engineering from IIT Roorkee and a Master\u2019s in Process Engineering & Plant Design from IIT Delhi. <\/p>\n\n\n\n

Ms. Susma Rawat <\/strong>is the Director (Exploration), an industry veteran with over 34 years of experience. She heads the ONGC Carbon Management and Sustainability Group and is also a member of various inter-ministerial committees of NITI Aayog. <\/span><\/p>\n\n\n\n

Mr. Vivek Chandrakant Tongaonkar<\/strong> is the Director of Finance and CFO. He has 37 years of expertise in various roles within the energy industry. He joined ONGC in March 1987 as an Assistant Executive Engineer (Electrical) after graduating from the College of Engineering in Pune. After completing an MBA (Finance) program at Symbiosis Institute of Business Management in Pune, he switched to ONGC’s Finance department. <\/span><\/p>\n\n\n\n

Shareholding Pattern<\/h3>\n\n\n\n
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In the Domestic Institution segment, mutual funds<\/a> hold a 7.94% stake in the company, and LIC holds a 9.29% stake. <\/p>\n\n\n\n

Financials Performance<\/h2>\n\n\n\n

Total Revenue<\/h3>\n\n\n\n

In FY24, ONGC group posted a total revenue of \u20b96,55,259 crores, lower by 5.4% compared to the previous financial year at \u20b96,92,903 crores. <\/p>\n\n\n\n

And, in the first half of FY25, total income increased by 4.63% to \u20b9333,359 crores from \u20b9318,584 crores reported in the same period last year. <\/p>\n\n\n\n

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EBITDA<\/h3>\n\n\n\n

In FY24, EBITDA rose by nearly 35% to \u20b91,15,057 crore from \u20b985,320.8 crore in FY23. <\/p>\n\n\n\n

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Profit After Tax<\/h3>\n\n\n\n

In FY24, ONGC’s net profit increased by 67.7% to \u20b957,101 crores from \u20b934,047 crores in FY23.<\/p>\n\n\n\n

In the first half of FY25, net profit declined by 41.5% to \u20b919,688.6 crores from \u20b933,665.89 crores reported in the same period the previous year.<\/p>\n\n\n\n

The company’s operational and net profit margins were 41.25% and 29.28%, respectively, in FY24.<\/p>\n\n\n\n

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Key Financial Ratios<\/h3>\n\n\n\n