Oil and Natural Gas Corporation (ONGC) is an Indian oil and gas company established in 1956. Along with crude oil, ONGC is primarily engaged in the production of liquified petroleum gas (LPG) and various other petroleum products with added value. The company later became a Public Sector Company in 1993.
The subsidiaries of ONGC are Mangalore Refinery and Petrochemicals Ltd., Hindustan Petroleum Corporation Ltd., ONGC Videsh Ltd., Petronet MHB Ltd., and HPCL Biofuels Ltd.
In this article, we will learn more about ONGC investment opportunities and find certain parameters to base your decisions on.
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ONGC Financial Analysis
The data mentioned below shows the revenue generated by ONGC which will show the rate of growth in revenue. ONGC is a good option for investors because mutual funds shareholding has increased and the annual profit growth is the highest in the sector.
Read the table below to learn more about the performance of the company over one year.
| Category | March 2023(In Crores) | March 2022(In Crores) |
| Net Sales | 144,513.45 | 110,318.87 |
| Total Revenue | 6,84,829.22 | 5,31,792.54 |
| Gross Profit | 1,55,490.34 | 1,43,375.89 |
ONGC Share Price Analysis
Being one of the largest producers of crude oil and natural gas, ONGC contributes majorly to fulfilling the energy needs of the company.
The 52-week high and low is the highest and lowest rate at which an ONGC share is traded. It is one of the technical indicators used to study the performance of a company in the share market. The 52-week high of ONGC was Rs 284.95 and the low is Rs 146.50. Below is the ONGC share price chart –
Is It Worth Investing in ONGC?
Out of 29 analysts, 48% suggest buying the ONGC share while 24% suggest holding on to it. When it comes to shareholding, 29.03% are Domestic Institutional Investors, 58.89% are Promoters, 9.2% are Foreign Institutional Investors and 2.89% are public.
In the financial year 2023, the standalone revenue of the company rose by 41% on a year-on-year basis but EBITDA margins shrank by 45.97%. However, the consequent years seem to be promising because the company is looking forward to investing in solar power projects, wind energy projects and investing in green energy projects. As the average increases from 1.6 lakh km to 5 lakh km in the financial year 2026, long-term investors must go for it while the ONGC share price is low. The company has also planned a capex of Rs 30,125 crores which is the same as last year.
Conclusion
ONGC is coming up big time so investing in the corporation is a smart idea. As of now, analysts are hopeful that the investment will pay off owing to the company’s expansion of exploration activities. With governments all over the world investing in renewable energy and India having jumped on the bandwagon for a more sustainable growth, start trading ONGC stocks as a safe financial investment.
If you wish to trade ONGC shares, stay updated at the Dhan platform for latest developments and safe trading practices!