Content:
- Company Overview of Oil and Natural Gas Corporation Ltd
- Company Overview of Oil India Ltd
- The Stock Performance of Oil and Natural Gas Corporation Limited
- The Stock Performance of Oil India Limited
- Fundamental Analysis of Oil and Natural Gas Corporation Ltd
- Fundamental Analysis of Oil India
- Financial Comparison of Oil and Natural Gas Corporation and Oil India
- Dividend of Oil and Natural Gas Corporation and Oil India
- Advantages and Disadvantages of Investing in Oil and Natural Gas Corporation Limited
- Advantages and Disadvantages of Investing in Oil India
- How to Invest in Oil India and Oil and Natural Gas Corporation Stocks?
- Oil and Natural Gas Corporation vs. Oil India Limited- Conclusion
- Oil and Natural Gas Corporation vs. Oil India – FAQ
Company Overview of Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Limited is an Indian company that specializes in the exploration, production, refining, and marketing of crude oil and natural gas. The company operates in various business segments including Exploration and Production, as well as Refining and Marketing.
Its activities involve exploring, developing, and producing crude oil, natural gas, and related products within India, as well as acquiring oil and gas assets internationally for exploration, development, and production. Additionally, the company is involved in downstream activities such as refining and marketing petroleum products, petrochemicals, power generation, LNG supply, pipeline transportation, SEZ development, and helicopter services.
Company Overview of Oil India Ltd
Oil India Limited is an integrated exploration and production company based in India, specializing in the upstream sector. It is involved in the provision of crude oil and natural gas. The company’s divisions include Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy, and others.
Oil India operates a range of facilities and equipment for seismic work, 2D and 3D data collection, processing and analysis, drilling, field development, LPG production, and pipeline transportation. It also manages a fully automated crude oil trunk pipeline, spanning approximately 1,157 kilometers from Naharkatia to Barauni.
The Stock Performance of Oil and Natural Gas Corporation Limited
The table below displays the month-by-month stock performance of Oil and Natural Gas Corporation Ltd for the past year.
| Month | Return (%) |
| Feb-2024 | 3.91 |
| Mar-2024 | 0.58 |
| Apr-2024 | 5.52 |
| May-2024 | -5.93 |
| Jun-2024 | -1.35 |
| Jul-2024 | 21.53 |
| Aug-2024 | -2.09 |
| Sep-2024 | -9.82 |
| Oct-2024 | -10.39 |
| Nov-2024 | -4.86 |
| Dec-2024 | -6.36 |
| Jan-2025 | 10.43 |
The Stock Performance of Oil India Limited
The table below displays the month-by-month stock performance of Oil India Ltd for the past year.
| Month | Return (%) |
| Feb-2024 | 27.73 |
| Mar-2024 | 8.28 |
| Apr-2024 | 2.28 |
| May-2024 | 1.84 |
| Jun-2024 | 4.81 |
| Jul-2024 | -21.26 |
| Aug-2024 | 27.01 |
| Sep-2024 | -19.95 |
| Oct-2024 | -17.6 |
| Nov-2024 | 4.01 |
| Dec-2024 | -11.22 |
| Jan-2025 | -3.12 |
Fundamental Analysis of Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Ltd (ONGC) is India’s largest crude oil and natural gas producer, playing a significant role in the country’s energy sector. Established in 1956, the company is a state-owned enterprise and operates in various exploration and production activities both onshore and offshore. It contributes to India’s energy security and has expanded its operations internationally.
The stock is currently priced at ₹233.65, with a market capitalization of ₹2,95,573.66 crore. Despite a 1-year return of -14.93% and a 6-month decline of -30.32%, it has shown a 5-year CAGR of 18.51%. The stock is 47.66% below its 52-week high.
- Close Price ( ₹ ): 233.65
- Market Cap ( Cr ): 295573.66
- Dividend Yield %: 5.21
- 1Y Return %: -14.93
- 6M Return %: -30.32
- 1M Return %: -11.98
- 5Y CAGR %: 18.51
- % Away From 52W High: 47.66
- 5Y Avg Net Profit Margin %: 6.15
Fundamental Analysis of Oil India
Oil India Limited (OIL), established in 1959, is a state-owned Maharatna company headquartered in Duliajan, Assam. It specializes in the exploration, development, and production of crude oil and natural gas, operating primarily in India’s northeastern region. OIL also engages in the transportation of crude oil and the production of liquefied petroleum gas (LPG).
The stock is currently priced at ₹400.55, with a market capitalization of ₹67,162.64 crore. It has delivered a modest 1-year return of 1.11% but faced significant declines in the last 6 months (-41.91%) and 1 month (-15.68%). The stock is 91.71% below its 52-week high. Despite this, the company has shown strong long-term growth, with a 5-year CAGR of 35.84%.
- Close Price ( ₹ ): 400.55
- Market Cap ( Cr ): 67162.64
- Dividend Yield %: 2.34
- 1Y Return %: 1.11
- 6M Return %: -41.91
- 1M Return %: -15.68
- 5Y CAGR %: 35.84
- % Away From 52W High: 91.71
- 5Y Avg Net Profit Margin %: 20.72
Financial Comparison of Oil and Natural Gas Corporation and Oil India
The table below shows a financial comparison of Oil and Natural Gas Corporation Ltd and Oil India Ltd.
| Stock | ONGC | OIL | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 641531.26 | 606208.1 | 673693.32 | 36821.02 | 34265.97 | 35062.65 |
| EBITDA (₹ Cr) | 77216.82 | 115816.98 | 102363.27 | 15991.71 | 11938.56 | 13692.65 |
| PBIT (₹ Cr) | 52635.37 | 87054.23 | 68337.72 | 14044.77 | 9809.58 | 11331.50 |
| PBT (₹ Cr) | 44746.01 | 76860.06 | 54620.32 | 13143.88 | 8845.91 | 10272.17 |
| Net Income (₹ Cr) | 36709.31 | 49221.36 | 39010.15 | 8728.59 | 6335.1 | 7381.55 |
| EPS (₹) | 29.18 | 39.13 | 31.01 | 53.66 | 38.95 | 45.38 |
| DPS (₹) | 11.25 | 12.25 | 12.50 | 13.33 | 9.67 | 11.17 |
| Payout ratio (%) | 0.39 | 0.31 | 0.40 | 0.25 | 0.25 | 0.25 |
Points to be noted:
- (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of Oil and Natural Gas Corporation and Oil India
The table below shows the dividends paid by both the companies.
| Oil India Limited | Oil and Natural Gas Corporation | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 7 Feb, 2025 | 17 Feb, 2025 | Interim | 7 | 27 Jan, 2025 | 7 February, 2025 | Interim | 5 |
| 5 Nov, 2024 | 14 Nov, 2024 | Interim | 3 | 7 Nov, 2024 | 19 November, 2024 | Interim | 6 |
| 21 May, 2024 | 30 August, 2024 | Final | 2.5 | 21 May, 2024 | 23 August, 2024 | Final | 2.5 |
| 4 Mar, 2024 | 18 Mar, 2024 | Interim | 8.5 | 5 Feb, 2024 | 16 February, 2024 | Interim | 4 |
| 8 Nov, 2023 | 22 November, 2023 | Interim | 3.5 | 10 Nov, 2023 | 21 November, 2023 | Interim | 5.75 |
| 24 May, 2023 | 25 Aug, 2023 | Final | 5.5 | 26 May, 2023 | 18 August, 2023 | Final | 0.5 |
| 10 Feb, 2023 | 22 Feb, 2023 | Interim | 10 | 9 Feb, 2023 | 24 February, 2023 | Interim | 4 |
| 10 Nov, 2022 | 21 November, 2022 | Interim | 4.5 | 9 Nov, 2022 | 21 November, 2022 | Interim | 6.75 |
| 27 May, 2022 | 15 September, 2022 | Final | 5 | 30 May, 2022 | 18 Aug, 2022 | Final | 3.25 |
| 11 Feb, 2022 | 22 February, 2022 | Interim | 5.75 | 08 Feb, 2022 | 21 Feb, 2022 | Interim | 1.75 |
Advantages and Disadvantages of Investing in Oil and Natural Gas Corporation Limited
Oil and Natural Gas Corporation Ltd
The primary advantage of Oil and Natural Gas Corporation Ltd (ONGC) is its leadership in India’s oil and natural gas exploration and production sector. With a large domestic market share and extensive reserves, ONGC benefits from strong government backing and a significant role in meeting India’s energy needs.
- Market Leadership in Oil and Gas Exploration – ONGC is India’s largest oil and gas exploration and production company. With a significant share of the country’s oil reserves and production, it plays a crucial role in ensuring national energy security.
- Diversified Energy Portfolio – ONGC has a diversified portfolio, including upstream oil and gas exploration, production, and downstream refining. This diversification helps mitigate risks from market volatility in any single energy segment and ensures a steady income stream.
- Strong Government Backing – As a state-owned company, ONGC benefits from strong government support, including favorable policies and subsidies. This backing helps the company navigate regulatory challenges and secure contracts for large-scale energy projects in India and abroad.
- Expansion in Renewable Energy – ONGC is making strides in the renewable energy space, focusing on solar and wind power projects to diversify its energy mix. This forward-thinking strategy positions the company to capitalize on the growing demand for clean energy.
- Robust Financial Performance – ONGC has consistently demonstrated strong financial performance, driven by efficient operations and large reserves. Despite market fluctuations, the company’s solid profitability and cash flows make it a stable investment in the energy sector.
The main disadvantage of Oil and Natural Gas Corporation Ltd (ONGC) is its dependence on global oil prices. As a state-owned enterprise focused on exploration and production, ONGC is highly susceptible to fluctuations in crude oil prices, which can impact its revenue and profitability.
- Volatility of Global Oil Prices – ONGC’s revenue is closely tied to global oil prices, which are subject to geopolitical events, market supply and demand, and OPEC decisions. Price fluctuations can significantly impact the company’s profitability and future growth prospects.
- High Operational Costs – The cost of exploration, production, and infrastructure development for oil and gas is capital-intensive. ONGC faces high operational expenses, particularly in offshore drilling, which can affect its profit margins and overall financial performance.
- Regulatory and Environmental Risks – As a major oil and gas company, ONGC faces stringent environmental regulations, compliance requirements, and potential legal risks related to oil spills and emissions. These factors could increase operational costs and create reputational risks.
- Declining Reserves and Production – The company is facing the challenge of declining reserves and production from existing fields. To sustain growth, ONGC must continue to invest in new exploration projects, which may involve greater risks and higher capital expenditure.
- Dependency on Domestic Market – ONGC’s revenue is largely reliant on domestic demand for energy, particularly from government contracts. Any slowdowns in India’s energy demand, or changes in government energy policy, can adversely impact the company’s future performance.
Advantages and Disadvantages of Investing in Oil India
Oil India Ltd
The primary advantage of Oil India Ltd lies in its strong position as one of India’s leading oil and gas exploration and production companies. With vast reserves and a significant role in the Indian energy sector, it benefits from steady demand and government backing.
- Strategic Reserves and Exploration – Oil India holds significant reserves of oil and natural gas, making it a key player in India’s energy sector. The company’s ability to tap into these resources ensures stable production and long-term growth potential.
- Strong Government Backing – As a public sector company, Oil India receives support from the government, which helps the company navigate regulatory challenges and secure favorable contracts. This backing provides financial stability and reduces market risks.
- Expanding International Presence – Oil India has been expanding its footprint beyond India, investing in exploration projects in countries like Venezuela and Myanmar. This international presence diversifies revenue sources and enhances the company’s growth opportunities in global energy markets.
- Focus on Renewable Energy – Oil India is increasingly investing in renewable energy projects like solar and wind power to diversify its energy portfolio. This strategy aligns with global trends toward clean energy and positions the company for future growth.
- Stable Financial Performance – The company has demonstrated consistent revenue and profit growth, driven by efficient operations and steady oil and gas production. Oil India’s strong financial position allows it to weather industry fluctuations and continue reinvesting in its operations.
The main disadvantage of Oil India Ltd lies in its dependence on fluctuating global oil prices. As a major player in the exploration and production of oil and gas, its revenue and profitability are highly sensitive to changes in commodity prices, creating volatility in earnings.
- Vulnerability to Oil Price Fluctuations – Oil India’s revenue and profitability are directly linked to the global price of crude oil. When prices fall, the company experiences reduced margins, which can hurt its financial performance, especially during periods of low oil demand.
- Regulatory and Environmental Risks – As a major oil and gas company, Oil India faces significant regulatory scrutiny, including environmental laws and policies related to carbon emissions. Compliance with these regulations may increase operational costs and hinder profitability.
- High Capital Expenditure Requirements – Oil India requires substantial capital investment for exploration, drilling, and infrastructure development. These capital-intensive operations can strain financial resources, especially when production or oil prices decline, affecting short-term profitability.
- Dependency on Domestic Market – Although Oil India has some international exposure, a significant portion of its revenue comes from the domestic market. Any slowdown in domestic demand or changes in government energy policies could negatively impact its revenue generation.
- Aging Infrastructure and Declining Production – Many of Oil India’s established fields are experiencing declining production. To maintain growth, the company needs to continually invest in new exploration projects, which involves higher risks and significant capital expenditure.
How to Invest in Oil India and Oil and Natural Gas Corporation Stocks?
Suppose you are looking to invest in Oil India and Oil and Natural Gas Corporation Stocks. In that case, you can easily do so through Alice Blue, where purchasing stocks is absolutely free with zero brokerage on equity delivery trades.
Step 1: Open a Demat & Trading Account
- Visit Alice Blue’s website
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- Log in to Alice Blue and go to the Funds section.
- Add money via UPI, Net Banking, or NEFT/RTGS for smooth transactions.
Step 3: Search & Analyze Oil India and Oil and Natural Gas Corporation Stocks.
- Use the search bar to find Oil India and Oil and Natural Gas Corporation Stocks.
- Check the market price, charts, and company details before investing.
Step 4: Place Your Buy Order
- Click Buy and choose Market Order (instant purchase) or Limit Order (buy at your set price).
- Enter the quantity and confirm your order.
Oil and Natural Gas Corporation vs. Oil India Limited- Conclusion
Oil and Natural Gas Corporation (ONGC) is India’s largest oil and gas exploration company, contributing significantly to domestic energy production. A government-owned entity, ONGC plays a crucial role in India’s energy security, with global exploration and production operations.
Oil India Limited (OIL) is a leading government-owned upstream oil and gas company, specializing in exploration, production, and transportation of crude oil and natural gas. With operations spanning across India and internationally, OIL is known for its strategic expansions and infrastructure investments.
Oil and Natural Gas Corporation vs. Oil India – FAQ
1. What is Oil and Natural Gas Corporation Ltd?
Oil and Natural Gas Corporation Ltd (ONGC) is a leading Indian multinational corporation engaged in the exploration and production of oil and natural gas. Established in 1956, it plays a crucial role in India’s energy sector, contributing significantly to the country’s economy and energy security.
2. What is Oil India Ltd?
Oil India Ltd is a leading Indian oil and natural gas exploration and production company, founded in 1959. It is headquartered in Noida, Uttar Pradesh, and is involved in various sectors including oil refining, pipeline transportation, and power generation, playing a significant role in India’s energy sector.
3. What are Oil Stocks?
Oil stocks refer to shares of companies involved in the exploration, production, refining, and distribution of oil and natural gas. These companies, such as ONGC, Oil India, and ExxonMobil, are influenced by global oil prices, geopolitical factors, and demand for energy, making them a key part of the energy sector.
4. Who is the CEO of Oil and Natural Gas Corporation Ltd?
Arun Kumar Singh serves as the Chairman and Chief Executive Officer (CEO) of Oil and Natural Gas Corporation Ltd (ONGC). He assumed the role on December 7, 2022, bringing nearly four decades of experience in the oil and gas industry.
5. Who Are The Main Competitors For Oil and Natural Gas Corporation And Oil India?
The main competitors for Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Ltd include Reliance Industries, Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), and Hindustan Petroleum Corporation Ltd (HPCL). These companies compete in the exploration, production, refining, and distribution of oil and natural gas in India and internationally.
6. What Is The Net Worth Of Oil India Vs Oil and Natural Gas Corporation?
As of February 2025, Oil India Ltd has a market capitalization of approximately ₹63,787 crore making it a significant player in India’s energy sector. In contrast, Oil and Natural Gas Corporation Ltd (ONGC) holds a market capitalization of around ₹3,01,801 crore reflecting its status as India’s largest oil and gas exploration and production company. These figures indicate that ONGC’s market value is substantially higher than that of Oil India, highlighting its dominant position in the Indian energy market.
7. What Are The Key Growth Areas For Oil and Natural Gas Corporation?
The key growth areas for Oil and Natural Gas Corporation (ONGC) include expanding its exploration and production activities in both domestic and international markets, focusing on renewable energy investments, enhancing technological innovations in offshore drilling, increasing gas production, and driving sustainable practices to reduce carbon emissions and improve energy efficiency.
8. What Are The Key Growth Areas For Oil India Limited?
The key growth area for Oil India Limited (OIL) is focusing on enhancing its position in the energy sector. The company is actively investing in renewable energy projects, including solar and wind power, to diversify its energy portfolio and align with global sustainability trends.
9. Which Company Offers Better Dividends, ONGC Or Oil India?
Oil India Limited offers a higher dividend yield compared to Oil and Natural Gas Corporation Ltd (ONGC). In the financial year 2023-24, Oil India declared a dividend of ₹20 per share, resulting in a dividend yield of approximately 6.7%. In contrast, ONGC declared a dividend of ₹12.25 per share, yielding about 4.4%. Therefore, for investors seeking higher dividend returns, Oil India presents a more attractive option.
10. Which Stock Is Better For Long-term Investors, Oil and Natural Gas Corporation Or Oil India?
For long-term investors evaluating Oil and Natural Gas Corporation (ONGC) and Oil India Limited, both companies present compelling opportunities. Analysts have given a buy rating to both stocks, with potential upsides of up to 80% in the long term. Investors should consider factors such as each company’s exposure to refining cycles, volume growth, and market dynamics before making a decision.
11. Which Sectors Contribute Most To ONGC And Oil India’s Revenue?
ONGC generates the majority of its revenue from the exploration and production of crude oil and natural gas, both domestically and internationally. Similarly, Oil India primarily derives its revenue from oil and gas exploration and production, with a focus on domestic operations, along with some international projects. Both companies are heavily reliant on these core segments for their revenue generation.
12. Which Stocks Are More Profitable, ONGC Or Oil India Ltd?
ONGC is generally more profitable than Oil India Ltd. ONGC has a larger scale of operations and a stronger financial position, which allows it to better capitalize on global oil prices and production efficiency. In comparison, Oil India has a smaller market presence, leading to relatively lower profitability.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
