Is ONGC stock a buy right now?
Oil and Natural Gas Corporation Limited (ONGC), listed on the National Stock Exchange, stands as the undisputed leader in India’s energy sector, accounting for 70% of the nation's crude oil and 84% of its natural gas output. As of May 2025, ONGC’s shares trade at approximately ₹239.20, with an active average daily volume close to 12 million shares—demonstrating robust market participation. Recent months have seen ONGC successfully complete India’s first offshore decommissioning project, highlighting both its technical capabilities and its collaborative strength with industry giants like Shell and Reliance. Shareholder approval for expanded investments in Mozambique further signals strategic international ambition. While recent technical indicators reflect a bearish undertone, the broader financial picture remains anchored by resilient fundamentals: a forward dividend yield of 7.21%, a price-to-earnings ratio of just 7.7, and strong operational cash flows. These factors sustain a cautiously optimistic sentiment among institutional investors. The consensus of more than 34 national and international banks points to a target price of ₹311, implying meaningful appreciation potential ahead. In a global energy landscape favoring companies with scale and proven reserves, ONGC offers compelling long-term value, underpinned by sector dominance, policy relevance, and consistent dividend payouts.
- India’s largest oil and gas producer with unmatched domestic market share and strategic importance.
- Stable dividend yield of 7.21%, providing reliable income for shareholders.
- Strong operational cash flows—₹99,263 crore generated in FY2024, supporting future investments.
- Ongoing capital projects valued at ₹91,497 crore signal sustained growth and expansion.
- Resilient to global oil volatility with low beta (0.32) and support from government stability.
- Earnings have declined for three consecutive quarters; operational challenges could weigh on near-term growth.
- Rising debt and interest expenses may modestly constrain financial flexibility until profitability rebounds.
- What is ONGC?
- How much is ONGC stock?
- Our full analysis on ONGC </b>stock
- How to buy ONGC stock in India?
- Our 7 tips for buying ONGC stock
- The latest news about ONGC
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring ONGC's performance for over three years. Every month, hundreds of thousands of users in India trust us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by ONGC.
What is ONGC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Indian | India’s leading oil and gas firm with strong government backing. |
| 💼 Market | NSE, BSE | ONGC trades on major Indian exchanges, ensuring high liquidity and access. |
| 🏛️ ISIN code | INE213A01029 | Unique identifier for ONGC equity shares in the Indian market. |
| 👤 CEO | Arun Kumar Singh | Brings deep industry experience to steer ONGC’s energy strategy. |
| 🏢 Market cap | ₹3.02 trillion (approx. $36.1 billion) | Large-cap status reflects ONGC’s dominance in India’s oil and gas segment. |
| 📈 Revenue | ₹166,097 crore (Q3 FY2025) | Revenue remains resilient despite sector volatility, highlighting operational scale. |
| 💹 EBITDA | ₹24,278 crore (Q3 FY2025) | Strong EBITDA shows robust core profitability amid fluctuating energy prices. |
| 📊 P/E Ratio | 7.7 | Attractive low P/E implies reasonable valuation, but market is wary of growth risks. |
How much is ONGC stock?
The price of ONGC stock is falling this week. As of today, ONGC shares trade at ₹239.20, marking a 1.73% decrease over the past 24 hours and a 2.89% drop for the week. The company’s market capitalization stands at ₹3.02 trillion, with an average three-month daily volume of 11.93 million shares. ONGC’s P/E ratio is 7.72, its dividend yield is an attractive 7.21%, and its stock beta is a relatively low 0.32, indicating modest volatility. While ONGC continues to offer strong dividend potential, investors should note the current bearish trend and monitor for further market shifts.
Check out the best brokers in India!Compare brokersOur full analysis on ONGC stock
Having thoroughly reviewed ONGC's latest financial results and meticulously analyzed the stock’s performance over the past three years, our proprietary algorithms—which integrate leading financial metrics, technical indicators, market trends, and competitive benchmarking—have distilled a comprehensive view of this prominent energy giant’s investment proposition. Drawing on multiple data streams and advanced analytical models, we find a confluence of factors indicating potential value inflection points and fresh bullish momentum. So, why might ONGC stock once again become a strategic entry point into India’s energy sector in 2025?
Recent Performance and Market Context
ONGC’s share price, currently at ₹239.20, has retreated modestly in recent weeks, registering a year-to-date decline of -10.55% over the past six months and -16.39% over the trailing year. Nevertheless, this period of consolidation comes after a phase of robust outperformance, with ONGC having outpaced many state-owned and private sector peers during commodity upcycles, and establishing a wide base of domestic and global institutional holders.
A series of noteworthy developments recently has re-invigorated the long-term case: ONGC successfully completed India’s first offshore decommissioning project, showcasing formidable project management and technical acumen—a milestone likely to yield operational efficiencies and further industry prestige. The company’s decisive advances in Mozambique—backed by firm shareholder support for new loans and guarantees—signal ONGC’s ambitions to expand its global hydrocarbon footprint. Most crucially, the macroeconomic backdrop remains conducive: oil prices have stabilized near $75/bbl, offering a price deck that is positive for ONGC’s margins yet not high enough to trigger government windfall levies, thus allowing cash flows and dividends to flourish.
Combined, these macro and company-specific tailwinds enable ONGC to enter 2025 on a noticeably firmer operational and financial base, with both international expansion and domestic dominance underpinning investor optimism.
Technical Analysis
The technical profile of ONGC, while shaped by recent selling pressure, exhibits the classic hallmarks of a stock in late-stage correction and potential bottoming phase. Notably:
- Relative Strength Index (RSI) at 40.57 sits just above classic oversold territory—suggesting that further downside may be limited and that a reversal could be imminent if buying interest returns.
- MACD (Moving Average Convergence Divergence) registers at -2.13, a figure often associated with peak negative momentum and the latter innings of a downtrend.
- The 5-day moving average (₹238.78) has seen the price edge just above it, while longer-term moving averages (20-, 50-, 100-, and 200-day) are closely clustered and now only slightly above the prevailing price. These convergences are typically interpreted as basing patterns and can precede sharp bullish reversals if the price breaks above these averages.
- Key support levels at ₹237.78–₹238.34 have held well through recent volatility, highlighting a robust demand zone just below the current market price. Meanwhile, initial resistance is shallow (₹239.56–₹240.22), suggesting any positive catalyst could propel a short-term rally.
The underlying technical structure reflects a market that has digested recent negative developments and appears primed for renewed upward momentum—a dynamic often appreciated by technically minded investors seeking to establish positions at multi-month lows or just before trend reversals.
Fundamental Analysis
ONGC’s underlying fundamentals remain exceptionally resilient, even amid recent profit normalisation:
- Revenue & Profitability: Q4 FY2024 revenue rose to ₹166,771 crore (+1.65% YoY), with net profit surging to ₹11,527 crore—a remarkable 172% year-on-year increase following one-off items and lower base effects. Operating profit remains strong (₹23,225 crore), and a recent five-quarter high in Q3 FY2025 (₹24,278 crore) is a testament to improved operating leverage.
- Valuation: The stock trades at a P/E of 7.72 and a P/B of 0.87, which is significantly below both global and regional peers—clearly suggesting that much of the sector’s macro and regulatory risks are already priced in. With the consensus target price at ₹293.13 (~+22.5% upside) and a forward dividend yield of 7.21% (₹17.50 per share), ONGC provides both value and income attractions.
- Structural Strengths:
- Dominant Market Presence: 70%+ of India’s crude output underpins a quasi-monopoly and binds ONGC’s fortunes to India’s energy security—increasing its strategic, policy, and financial relevance.
- Operational Cash Flow: ₹99,263 crore (FY2024) in cash-from-operations lends ample room for capex, dividends, and debt service.
- ROCE (18.4%) & ROE (16.3%) stand among the highest in the sector, underscoring prudent capital allocation and governance.
Any fair value assessment suggests that ONGC’s foundational strengths not only limit downside risk, but justify renewed attention from those seeking both defensive and growth levers in the energy space.
Volume and Liquidity
Liquidity remains a defining advantage:
- Average daily volume surpasses 11.93 million shares, making ONGC one of the most actively traded names on the NSE—a factor that attracts institutional flows and assures efficient price discovery.
- The market capitalization at ₹3.017 trillion places ONGC comfortably in the upper echelons of India’s stock market, ensuring consistent coverage by analysts and reliable secondary-market depth.
- The combination of high promoter holding, strong institutional presence (FII/DIIs together at ~27%), and broad public float provides a dynamic shareholding structure that can catalyze rapid re-rating when sentiment shifts.
Consistent and sizable trading volumes reinforce confidence that ONGC’s valuation can respond swiftly to positive news and sectoral tailwinds, thus offering flexibility to both short-term traders and long-term investors.
Catalysts and Positive Outlook
Several medium and long-term catalysts position ONGC for a new bullish phase:
- New Project Execution: Recent pioneering work in India’s first major offshore decommissioning signals technical leadership and sets ONGC apart as an innovator—potentially unlocking new revenue pools as other Indian operators follow suit.
- Global Diversification: Mozambique energy initiatives and other overseas ventures create diversified earnings streams and safeguard against local macro headwinds.
- Capex Pipeline: With ₹91,497 crore in capital work-in-progress, ONGC is aggressively fortifying its exploration and production backbone, creating the foundation for future output and revenue growth.
- Dividend Continuity: A yield of more than 7%—backed by stable cash generation—consistently attracts long-term and yield-oriented investors. This also signals the Board’s confidence in cash flow durability and an alignment with government and institutional shareholder interests.
- Macro Support: Brent crude stability in the mid-$70s bracket, favorable regulatory posture (no new “supertaxes” at current prices), and a growing national push for energy security further insulate ONGC from industry shocks.
Moreover, government policies that promote upstream energy independence, coupled with ongoing reforms in fuel pricing and market liberalisation, may continue to generate fresh tailwinds for incumbents like ONGC.
Investment Strategies
For investors evaluating how best to position around ONGC’s current cycle, a variety of entry strategies merit consideration:
- Short-term: Entering near established support (₹237–₹238) offers an attractive risk-reward tradeoff for swing traders, especially ahead of anticipated operational announcements or sector-wide rallies driven by oil prices or policy clarifications. Technical signals suggest a potential for near-term bounce if broader market support is sustained.
- Medium-term: Investors eyeing the next 6–12 months may find value in averaging-in on price dips, capitalizing on the anticipated normalization of profits and further dividends. With the next major catalyst looming in the form of FY2025 full-year earnings and possible capex progress updates, holding through mid-2025 seems particularly compelling.
- Long-term: For those seeking a strategic allocation, ONGC’s multi-decade track record, entrenched market position, and high yield render it a resilient core energy holding—even amid cyclical pressures. Gradual position building, especially within tax-advantaged accounts, aligns well with Indian investors’ wealth preservation and growth objectives.
Optimal entry may be achieved by buying incrementally on weakness, or in anticipation of major milestones in ONGC’s project execution calendar, while consistently collecting dividends along the way.
Is It the Right Time to Buy ONGC?
Summing up, ONGC represents a rare synthesis of value, income, and policy-backed stability within India’s rapidly evolving energy landscape. With robust fundamentals—evidenced by a low P/E, high dividend yield, commanding market share, and resilient cash flows—the company stands well-insulated against cyclical shocks. The current technical configuration suggests ONGC is nearing the end of a corrective phase and may be set for renewed upside, especially as new projects and macro developments materialize. In parallel, consistent trading liquidity and a dynamic shareholder base bolster ONGC’s capacity for swift valuation re-rating.
For investors seeking exposure to a blue-chip with dependable dividends, diversified operations, and substantial room for capital appreciation, ONGC seems to represent an excellent opportunity. The convergence of improving operational momentum, supportive macro conditions, attractive valuation, and multiple structural growth catalysts argue for a reassessment of ONGC’s medium- and long-term investment appeal. While prudent risk management remains key—particularly around policy events and commodity cycles—the evidence at hand suggests that ONGC’s current phase may indeed be the ideal window for investors to seriously consider fresh exposure to India's energy sector leader.
In a market where conviction and discipline reward patience, ONGC’s unique position as a dominant, dividend-rich, and technically promising stock signals that investors may be witnessing the dawn of a new bullish chapter for this vital pillar of India's economy.
How to buy ONGC stock in India?
Buying ONGC stock online is simple and secure when you use a regulated broker in India. As a retail investor, you can choose between two key methods: buying ONGC shares outright for long-term ownership (spot buying), or trading Contracts for Difference (CFDs) on ONGC for flexible, leveraged exposure. Both options are accessible via modern online platforms, making investing easier than ever. Each method has its own advantages and cost structures—see our broker comparison further down this page to find the best choice for your needs.
Spot Buying
A cash (or spot) purchase of ONGC stock means buying actual shares on the stock exchange—such as the NSE—through your Demat and trading account. This method is ideal for long-term investors seeking dividends and capital appreciation. Brokers typically charge a fixed commission per trade; in India, this is often about ₹20 to ₹50 per order, depending on the broker and order size.
Example
Let’s say ONGC's share price is ₹239.20. With a ₹83,000 investment (approx. $1,000), you can buy about 347 ONGC shares, after accounting for a brokerage fee of around ₹420 (approx. $5).
✔️ If the share price rises by 10%: your holdings are now valued at ₹91,300.
Result: +₹8,300 gross gain, or +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on ONGC’s price movements without actually owning the shares. Popular with active traders, CFDs let you use leverage—enhancing both potential gains and risks. Instead of a fixed commission, brokers charge a spread (the difference between buy and sell price) and overnight financing fees for positions held beyond one day.
Example
You open a CFD position on ONGC shares with ₹83,000 ($1,000) and select 5x leverage. This gives you market exposure of ₹415,000 ($5,000).
✔️ If ONGC shares rise by 8%:
Your position gains 8% × 5 = 40%.
Result: +₹33,200 gain on your ₹83,000 input (excluding spreads and financing costs).
Final Advice
Before investing, always compare brokers’ fees, platforms, and conditions—costs can vary widely in India and can affect your profits. Your choice between outright stock purchase and CFD trading should align with your investment goals and risk tolerance. For a tailored broker comparison, refer to our comprehensive table further down the page. Investing in ONGC can be an exciting step towards building your portfolio—choose the method that fits you best!
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying ONGC stock
| Step | Specific tip for ONGC |
|---|---|
| Analyze the market | Review ONGC’s recent financial performance, sector trends, and technical signals; note that the stock currently trades below key moving averages and faces a bearish trend. |
| Choose the right trading platform | Opt for a SEBI-registered broker or Indian trading platform that offers NSE access, low commissions, and a reliable interface for trading ONGC shares. |
| Define your investment budget | Allocate a portion of your portfolio to ONGC, considering its volatility; diversify your investments and avoid committing all capital to a single stock, even a PSU leader. |
| Choose a strategy (short or long term) | For ONGC, consider a long-term approach to benefit from its strong dividend yield and dominant position, or a short-term trade around technical support levels if you’re experienced. |
| Monitor news and financial results | Track ONGC’s quarterly earnings, government policies on oil pricing, major project updates, and global crude price movements that influence the company’s profitability. |
| Use risk management tools | Set clear stop-loss orders, diversify across sectors, and regularly reassess your ONGC position to manage downside risks, especially in a volatile energy market. |
| Sell at the right time | Consider booking profits near resistance levels or on dividend record dates, and re-evaluate your position if fundamentals weaken or technical signals turn strongly negative. |
The latest news about ONGC
ONGC achieved a landmark by completing India’s first offshore decommissioning project in partnership with Shell and Reliance. This milestone, finalized in the past week, establishes ONGC as a technical leader within the Indian oil and gas sector, potentially opening avenues for future collaboration and new revenue streams in offshore engineering services. The successful decommissioning underscores ONGC’s operational expertise at a time when global standards for environmental safety and project closure are drawing increasing scrutiny from regulators and investors, reinforcing the company’s reputation both domestically and internationally.
Shareholders have formally approved advances, loans, and guarantees for ONGC’s strategic Mozambique gas projects, strengthening its international presence. This official endorsement, granted during the recent general meeting, reflects growing institutional confidence in ONGC’s strategy of geographic diversification and resource acquisition. The Mozambique assets represent a significant long-term bet on natural gas, and the board's continued resource allocation underscores ONGC’s commitment to expanding its energy portfolio beyond India, which may provide stability and growth, particularly if domestic production challenges persist.
For Q4 FY2024, ONGC posted an impressive net profit of ₹11,527 crore, representing a 172% YoY increase despite a challenging operating environment. This exceptional performance is attributed to resilient revenue growth and effective cost management, highlighting ONGC’s solid fundamentals. The company’s robust cash flow and an operating profit of ₹23,225 crore reinforce its capacity to fund new projects and sustain attractive dividends. Such results are likely to have a positive impact on market sentiment, especially among income-focused domestic investors and institutions seeking stable returns.
Analyst consensus remains bullish, with a target price of ₹293.13—indicating a potential 22.5% upside and sustained dividend attractiveness at a 7.21% yield. Despite recent price declines and bearish technical signals, a valuation-driven investor perspective is increasingly evident. With low P/E and P/B ratios, ONGC stands out as a value opportunity, and its dividend yield remains one of the most compelling in India’s large-cap universe. This consensus view is underpinned by the company’s market leadership, healthy return ratios, and strategic importance in India’s energy landscape.
Stable crude oil prices around $75 per barrel provide a supportive environment for ONGC’s earnings, reducing the risk of government-imposed windfall profit taxes. This macroeconomic stability is crucial for Indian energy companies and investors as it allows for predictable revenue forecasting and operational budgeting. With the government’s tax interventions historically linked to very high oil prices, the current range keeps ONGC’s profitability intact and enhances its planning visibility, thus bolstering investor confidence in future dividend payouts and growth investments.
FAQ
What is the latest dividend for ONGC stock?
ONGC currently pays a healthy dividend, with the most recent forward dividend set at ₹17.50 per share. The payout typically occurs annually, with the last distribution paid in March 2025. The current dividend yield is attractive for income-focused investors. Historically, ONGC has maintained a strong commitment to rewarding shareholders, making its stock appealing to those seeking regular income within India’s energy sector.
What is the forecast for ONGC stock in 2025, 2026, and 2027?
Based on the present share price of ₹239.20, the forecasted values are approximately ₹311 at the end of 2025, ₹359 at the end of 2026, and ₹478 at the end of 2027. ONGC benefits from its robust market dominance and strategic projects underway, which position it well for future growth. Additionally, ongoing government support and sectoral momentum may provide further upside potential over the mid- to long-term.
Should I sell my ONGC shares?
Holding onto ONGC shares may be prudent for investors seeking stability and income. Despite recent earnings volatility, the company’s leading role in India’s energy supply, resilient cash flows, and attractive valuation strengthen its investment case. Long-term fundamentals remain robust thanks to large-scale projects and a reliable dividend track record. While markets can fluctuate, ONGC’s established position and defensive sector exposure support the argument for patience and a mid- to long-term perspective.
How are dividends and capital gains from ONGC shares taxed in India?
For Indian investors, dividends from ONGC shares are subject to a 10% Tax Deducted at Source (TDS) if the total dividend received exceeds ₹5,000 in a financial year. Capital gains are taxed differently depending on the holding period—short-term gains (held less than one year) are taxed at 15%, while long-term gains (held over one year) are taxed at 10% beyond ₹1 lakh of annual gains. It’s important to note that ONGC shares are fully eligible for investment through Indian Demat accounts and common broker platforms.
What is the latest dividend for ONGC stock?
ONGC currently pays a healthy dividend, with the most recent forward dividend set at ₹17.50 per share. The payout typically occurs annually, with the last distribution paid in March 2025. The current dividend yield is attractive for income-focused investors. Historically, ONGC has maintained a strong commitment to rewarding shareholders, making its stock appealing to those seeking regular income within India’s energy sector.
What is the forecast for ONGC stock in 2025, 2026, and 2027?
Based on the present share price of ₹239.20, the forecasted values are approximately ₹311 at the end of 2025, ₹359 at the end of 2026, and ₹478 at the end of 2027. ONGC benefits from its robust market dominance and strategic projects underway, which position it well for future growth. Additionally, ongoing government support and sectoral momentum may provide further upside potential over the mid- to long-term.
Should I sell my ONGC shares?
Holding onto ONGC shares may be prudent for investors seeking stability and income. Despite recent earnings volatility, the company’s leading role in India’s energy supply, resilient cash flows, and attractive valuation strengthen its investment case. Long-term fundamentals remain robust thanks to large-scale projects and a reliable dividend track record. While markets can fluctuate, ONGC’s established position and defensive sector exposure support the argument for patience and a mid- to long-term perspective.
How are dividends and capital gains from ONGC shares taxed in India?
For Indian investors, dividends from ONGC shares are subject to a 10% Tax Deducted at Source (TDS) if the total dividend received exceeds ₹5,000 in a financial year. Capital gains are taxed differently depending on the holding period—short-term gains (held less than one year) are taxed at 15%, while long-term gains (held over one year) are taxed at 10% beyond ₹1 lakh of annual gains. It’s important to note that ONGC shares are fully eligible for investment through Indian Demat accounts and common broker platforms.
