ONGC Company Analysis

Company Overview : ONGC, State Owned Oil and Gas Multinational company under administrative control of ministry of Petroleum and Natural Gas. The company is Diversified in variety of sections of Oil and natural gas. Some of them are

With its wholly owned subsidiary ONGC Videsh, which is India’s largest MNC having 36 oil and gas projects out of which 13 are operating among 17 countries. ONGC alone manage to produce 1.26 million barrel oil per day. It is a producer of 70% of domestic oil production. Through its subsidiary MRPL, the company is operating in oil refining also.

ONGC has expertise for any services needed for oil exploration and drilling.

Share Holding Pattern

Financials and Ratio

 2010-112011-122012-132013-142014-15 2015-16
Revenue 71745.7780968.0788442.0890603.4788237.5384560.24
Net Profit18924.025122.9520925.7022094.8117732.9516003.65
Net Profit Margin 27.6932.8325.2126.3321.3920.42
EPS22.1229.3624.4625.832118.71
Book Value 113.97132.03145.47159.81169.01177.49
Dividend Per Share 8.759.759.509.509.508.50
Dividend Pay out 39.5533.2038.8436.7845.8345.44
ROE 19.4022.2416.8116.1612.2610.53
ROCE14.6817.2013.0212.269.388.04
ROA12.7814.6211.7411.088.527.27
Debt to Equity 00.04000.010
Asset Turnover 46.1644.5546.5942.0939.8235.60

Future Prospects : As a Upstream Oil Company, revenue and profitability of ONGC is affected by Price of crude. In last one or two years,Curde prices were under pressure due to many things. Low demand, excess supply are main reason for this. But as now OPEC countries are in talk with Non-OPEC Countries for reducing production, it looks like Oil prices will go high. Even though there is Possibilities that if price went above $60/ bbl then US oil producers will start their own production which is mainly shale.

In any way, Oil prices are going up and that is good sign for ONGC.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter