ONGC.NS

Oil and Natural Gas Corporation Limited (ONGC.NS) is a major player in India's energy sector. With a market capitalization of ₹3,491.91 billion, it holds a significant position among public sector undertakings. The stock's Price-to-Earnings (P/E) ratio of 7.68 indicates that the stock is currently valued relatively low compared to its earnings, potentially making it an appealing option for value investors.

ONGC's Return on Equity (ROE) is not stated here, but the company's efficiency in generating returns can be inferred from other accessible financial metrics. However, it's notable that ONGC maintains a manageable debt-to-equity ratio of 41.96, suggesting a conservative approach towards leveraging debt relative to the company's equity, which may appeal to risk-averse investors.

Operating with an operating margin of 8.24%, ONGC demonstrates its ability to produce profit relatively efficiently from its operations, though this margin is modest in comparison to some industry peers. The negative earnings growth of -29.7% and the low revenue growth of 1.7% hint at some challenges in expanding profitability and revenue, which potential investors should consider.

The company's EBITDA margin stands at 15.29%, reflecting a decent ability to maintain efficient operations. Institutional investors hold about 21.77% of ONGC shares, suggesting a reasonable degree of confidence from large investors. The stock's Price-to-Book (P/B) ratio of 1.01 further suggests the stock is valued close to its actual book value, which may indicate that the market perceives it to be fairly priced.

Given these factors, investors should weigh the relatively low P/E ratio and manageable debt levels against the negative earnings growth and modest revenue increases. Overall, ONGC appears to maintain a stable operational profile within the energy sector but faces challenges in profitability growth, offering an interesting mix of strengths and areas to watch for potential long-term investors.