India’s top upstream oil and gas business, Oil and Natural Gas Corporation is looking to collaborate with foreign oil corporations to grow its upstream activities and boost production. Investors are pondering whether ONGC is an intelligent investment option as the company’s performance stays in the limelight. The current situation of the business, its growth potential, and a forecast of ONGC’s share price objective between 2024 and 2030 are all covered in this article.
Also, ONGC is going to spend Rs. 250 crore to upgrade the Goa safety training institute.
Stock History of Oil and Natural Gas Corporation
Oil and Natural Gas Corporation (ONGC) is a publicly traded company that has been listed on the Indian stock market for over three decades. Investors should take the company’s stock history into account when assessing the company’s success and prospects for growth in the future.
The shares of ONGC were initially listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India in 1994, following the company’s initial public offering (IPO) (NSE). The company’s shares were oversubscribed by almost 33 times during the extraordinarily successful IPO.
Since then, there have been plenty of ups and downs for ONGC’s stock. The late 1990s and early 2000s saw a period of consistent increase in the company’s shares. However, ONGC’s share price was significantly impacted by the global financial crisis in 2008, and the company’s stock price dropped precipitously that year.
Notwithstanding this setback, ONGC’s stock has since rebounded and the business has kept on giving its shareholders respectable dividends. As a result of market conditions and other reasons, the share price of ONGC has occasionally spiked and fallen between INR 100 and INR 200 over the past ten years.
Overall, ONGC’s stock history shows that the company has been a relatively stable and reliable investment choice over the years, with occasional periods of volatility.
ONGC Q3 FY24 Results
- ONGC’s profits went down by 7.9% to Rs 10,748 crore in Q3 FY24.
- Less crude oil (3.3% drop to 5.21 MMT) and natural gas (4.3% drop to 5.12 BCM) were produced.
- Problems like shutting down offshore platforms, a new oil pipeline, and Cyclone Biparjoy caused production issues.
- They plan to make up for the drop in production with new projects in the coming months.
- ONGC’s board okayed a second interim dividend of 80%, giving Rs 4 per share, in addition to the earlier one.
- The total payout for the second interim dividend is Rs 5,032 crore, with a record date set for February 17, 2024.
- ONGC is investing $2 billion to support its petrochemical subsidiary and increase its ownership to 95%.
- They earned 6.4% less on every barrel of crude and 24.2% less on gas.
- ONGC is taking steps like well interventions and new drilling to counter production drops and ensure stability.
Below are the trading platforms that you can use to purchase Oil and Natural Gas Corporation shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| February 2024 | ₹279.40 | ₹242.96 |
| March 2024 | ₹285.10 | ₹247.91 |
| April 2024 | ₹276.80 | ₹240.69 |
| May 2024 | ₹272.71 | ₹237.14 |
| June 2024 | ₹282.52 | ₹245.67 |
| July 2024 | ₹279.70 | ₹243.22 |
| August 2024 | ₹290.89 | ₹252.95 |
| September 2024 | ₹302.52 | ₹263.06 |
| October 2024 | ₹296.59 | ₹257.91 |
| November 2024 | ₹305.49 | ₹265.64 |
| December 2024 | ₹313.13 | ₹272.28 |
In February 2024, ONGC is anticipated to experience a maximum price of ₹279.40 and a minimum price of ₹242.96. The trend is expected to continue throughout the year, reaching a peak of ₹313.13 and a low of ₹272.28 in December 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹319.39 | ₹245.68 |
| February 2025 | ₹327.58 | ₹251.98 |
| March 2025 | ₹340.35 | ₹261.81 |
| April 2025 | ₹333.68 | ₹256.68 |
| May 2025 | ₹323.96 | ₹249.20 |
| June 2025 | ₹338.54 | ₹260.42 |
| July 2025 | ₹331.90 | ₹255.31 |
| August 2025 | ₹342.17 | ₹263.21 |
| September 2025 | ₹354.14 | ₹272.42 |
| October 2025 | ₹363.35 | ₹279.50 |
| November 2025 | ₹372.43 | ₹286.49 |
| December 2025 | ₹381.74 | ₹293.65 |
In January 2025, ONGC’s prices are predicted to go as high as ₹319.39 and as low as ₹245.68. As the year progresses, these fluctuations are expected to continue, reaching a peak of ₹381.74 and a low of ₹293.65 in December 2025.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹314.97 | ₹220.48 |
| 2027 | ₹346.47 | ₹242.53 |
| 2028 | ₹485.05 | ₹242.53 |
| 2029 | ₹419.96 | ₹209.98 |
| 2030 | ₹545.95 | ₹382.16 |
The future trajectory of ONGC’s share prices from 2026 to 2030 paints a compelling picture of growth and potential returns for investors. The projected maximum and minimum prices indicate a positive trend, with an upward trajectory each year.
In 2026, the share price is estimated to range between ₹220.48 and ₹314.97, showcasing a considerable increase. The optimism continues into 2027, with projections reaching a maximum of ₹346.47 and a minimum of ₹242.53.
Notably, the year 2028 presents a significant leap, with an estimated maximum price of ₹485.05 and a minimum of ₹242.53. The subsequent years, 2029 and 2030, maintain this positive trend, with the latter projecting a substantial maximum price of ₹545.95 and a minimum of ₹382.16. These predictions offer investors a strategic outlook, suggesting that ONGC’s shares hold the potential for sustained growth and favorable returns in the coming years.
Financial Condition of Oil and Natural Gas Corporation: Last 5 years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
|---|---|---|---|---|---|---|
| Sales (Rs. Crores) | 421,624 | 396,728 | 303,849 | 491,246 | 632,291 | 643,977 |
| Operating Profit (Rs. Crores) | 74,819 | 52,105 | 49,473 | 79,874 | 75,527 | 99,707 |
| Other Income (Rs. Crores) | 9,567 | 982 | 11,271 | 6,797 | -30 | 4,323 |
| Interest (Rs. Crores) | 5,837 | 7,489 | 5,079 | 5,696 | 7,889 | 9,224 |
| Depreciation (Rs. Crores) | 23,704 | 26,635 | 25,538 | 26,883 | 24,557 | 27,274 |
| Profit before Tax (Rs. Crores) | 54,846 | 18,962 | 30,126 | 54,091 | 43,051 | 67,532 |
| Tax Percentage | 38% | 40% | 29% | 9% | 24% | – |
| Net Profit (Rs. Crores) | 33,938 | 11,456 | 21,360 | 49,294 | 32,778 | 51,303 |
| EPS (Rs.) | 24.28 | 8.59 | 12.96 | 36.19 | 28.17 | 34.23 |
| Dividend Payout Percentage | 29% | 58% | 28% | 29% | 40% | – |
Over the last five years, Oil and Natural Gas Corporation (ONGC) has demonstrated a varied financial performance. Sales, reflecting the revenue generated, witnessed fluctuations but surged impressively from ₹303,849 crores in March 2021 to ₹632,291 crores in March 2023. Operating Profit, indicative of operational efficiency, showed peaks and troughs, reaching a substantial ₹99,707 crores in the trailing twelve months (TTM) ending March 2023.
Other Income, which includes non-operating revenues, experienced volatility, even dipping into negative territory in March 2023. Despite facing challenges, ONGC maintained stability in key financial metrics like Interest and Depreciation. The Profit before Tax saw a notable spike to ₹67,532 crores in TTM, revealing ONGC’s resilience.
Net Profit and Earnings Per Share (EPS) displayed fluctuations, with Net Profit reaching ₹51,303 crores in TTM. The Dividend Payout Percentage remained reasonable, showcasing a balance between rewarding shareholders and retaining earnings for growth. Overall, ONGC’s financial condition over the last five years underscores adaptability and strategic resilience in the dynamic energy sector.
FAQS
The share price target of Oil and Natural Gas Corporation for 2025 might be around ₹381.74.
What is the growth trend in ONGC’s revenue over the past five years?
ONGC’s revenue has shown a mixed growth trend over the past five years, with a maximum revenue of 6,32,291 crores in March 2023.
By the end of 2030, the share price of Oil and Natural Gas Corporation is expected to reach approximately ₹545.95 per share.
The share price of ONGC may be anticipated to increase in the future based on the business’s financial performance and growth prospects. Before making any investing selections, it is crucial to carry out careful research and analysis.
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Conclusion
Based on the growth in income, PAT, revenue, and profit over the previous five years, ONGC has demonstrated excellent performance. ONGC has demonstrated its ability to persevere in the face of difficulty with a revenue growth rate of 23.6% and a profit growth rate of 105.3% in the most recent year alone. The business has grown steadily over the years, which suggests a promising future and makes it a good investment prospect.
ONGC shares appear to be inexpensive with a current P/E ratio of 6.0, which is lower than the industry average, making them a tempting purchase. A profitable long-term investment in ONGC shares can therefore be drawn based on the financial statements and the company’s overall positive growth trajectory.
What did we learn?
