O N G C (ONGC)

FairStock Score: 90/100 — HIGH CONVICTION

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering ONGC at ₹236.40, below its ₹295.50 book value, for a P/B of 0.80. A Graham Number of ₹445.26 suggests a margin of safety of 37.18%, and a DCF intrinsic value of ₹1,112.54—though I treat DCF as an estimate, not gospel. The P/E is 6.83 and dividend yield is 6.04%, so I am paid to wait. Business quality? Oil exploration and production is inherently cyclical, not a toll bridge. But ONGC's scale, 58.89% promoter holding, and ₹47,967 Cr free cash flow are meaningful. Returns are respectable but not wonderful: ROE 12.23%, ROCE 12.04%. Debt/equity 0.43 is manageable; current ratio 0.94 is slightly below one, so liquidity deserves watching. Sales growth 45.49% and profit growth 112.28% in the latest data are spectacular, yet the 5yr revenue CAGR of 9.06% tells me this is not a consistent compounder—it is a commodity cycle at a favorable point. Piotroski 7/9 and FairStock 90/100 support the balance-sheet and value case. Altman Z-score 2.21 sits in the grey zone, and EV/EBITDA 180.22 is an outlier that demands caution. At 52-week range ₹218.50–₹307.50, the stock is near the lower end. For a Graham-style investor, the margin of safety is the main attraction. For a Buffett-style investor, the lack of pricing power and cyclicality keep it from being a wonderful business. I would call it a cyclical asset play: cheap, cash-generative, dividend-paying, but requiring discipline and a margin of safety.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer