energy

Oil & Natural Gas Corp

ONGC · Nifty 50

245

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 7.5 (33%ile of 5Y range 7-10). Trading near median.
Sector Positionenergy sector. Flow: outflow. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score100/100 (STRONG). 2 positive flags, 6 concerns.
Historical Context166 similar technical setups. Average outcome: -8.3% decline. 0% positive.
Revenue TrendRevenue growing at 1.9% YoY. Slow revenue growth — 1.9% YoY

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Oil & Natural Gas Corp scores 100/100 on fundamentals (strong). Oil & Natural Gas Corp: PE below historical average. BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 11.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE11.2%=
6.3%Net Margin
×
0.8xTurnover
×
2.1xLeverage

ROE of 11.15% is moderate efficiency-driven and stable. Net margin of 6.3% × asset turnover of 0.84x × leverage of 2.1x.

What This Means

Net margin of 6.3% means the company keeps ₹6.3 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.84x means the company efficiently uses its assets to generate revenue. Leverage of 2.1x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

33.6%

Operating

12.2%

Net

6.3%

improving

Gross margin 33.6% → operating margin 12.2% → net margin 6.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 2.7x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 6.2x — very comfortable. Debt service is not a concern. Debt/EBITDA at 2.2x is moderate.

Free Cash Flow

STRONG

FCF margin at 8.9% — moderate. Generating cash after investments.

Peer Comparison

Oil & Natural Gas Corp is compared against 10 peers in the energy sector.

Key Watchpoints

🟢

Breaks above ₹257 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹233 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 7.6

Valuation normalization

🟢

Energy sector entering leadership

Sector rotation signal

Detected Patterns

✅ High Earnings Quality: Cash flow covers earnings 2.7x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 4 Warning2 Positive8 total flags
🔴Cash covers only 1% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Overall governance risk: 10/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Unusual items are 26% of net income
Earnings Quality

One-off gains contributing to profit. Check sustainability of earnings without these items.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹10614K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Audit risk elevated: 10/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

⚠️Board risk elevated: 9/10
Governance

Governance structure concerns. Independent director representation may be weak.

High promoter holding: 69%
Governance

Strong insider alignment. Promoters have significant skin in the game.

Price/Sales: 0.5x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
7.5HIGH
P/B Ratio
0.8HIGH
ROE
12.7%HIGH
Market Cap
₹30972646.5L CrHIGH
From 52W High
80% of high
Promoter Holding
69.2%MODERATE
Institutional
22.8%
Sector Peers
10