ONGC Stock Price Analysis and Quick Research Report. Is ONGC an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse ONGC.
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PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). ONGC has a PE ratio of 8.45721537345903 which is low and comparatively undervalued.
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Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. ONGC has ROA of 7.9339% which is a bad sign for future performance. (Higher values are always desirable.)
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Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. ONGC has a Current ratio of 1.3984.
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Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. ONGC has a ROE of 11.4455%. (Higher is better)
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Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. ONGC has a Debt to Equity ratio of 0.0266 which means that the company has low proportion of debt in its capital.
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Sales growth: ONGC has reported revenue growth of 3.1765% which is poor in relation to its growth and performance.
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Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of ONGC for the current financial year is 34.1295522399566%.
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Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for ONGC is Rs 12.25 and the yield is 5.2508%.
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Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of ONGC is Rs 27.58. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of ONGC in Ticker for free. Also, one can get the intrinsic value of ONGC by using Valuation Calculators, which are available with a Finology ONE subscription.
ONGC FAQs
Q1. What is ONGC share price today?
Ans: The current share price of ONGC is Rs 233.25.
Q2. What is the market capitalisation of ONGC?
Ans: ONGC has a market capitalisation of Rs 293435.01247995 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of ONGC?
Ans: The PE ratio of ONGC is 8.45721537345903 and the P/B ratio of ONGC is 0.904804131725517, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of ONGC share?
Ans: The 52-week high share price of ONGC is Rs 302, and the 52-week low share price of ONGC is Rs 205.
Q5. Does ONGC pay dividends?
Ans: Currently, ONGC pays dividends. Dividend yield of ONGC is around 5.2508%.
Q6. What are the face value and book value of ONGC shares?
Ans: The face value of ONGC shares is Rs 5, while the book value per share of ONGC is around Rs 257.7906. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of ONGC?
Ans: ONGC has a total debt of Rs 8407.681 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of ONGC?
Ans: The ROE of ONGC is 11.4455% and ROCE of ONGC is 16.1324%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is ONGC a good buy for the long term?
Ans: The ONGC long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is ONGC undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the ONGC appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check ONGC’s financials?
Ans: You can review ONGC’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.