ONGC.pptx

.

1. OIL AND NATURAL GAS CORPORATION

2. AN OVERVIEW The  Oil and Natural Gas Corporation  ( ONGC ) is an  Indian  oil and gas explorer and producer, headquartered in  New Delhi . ONGC was founded on 14 August 1956 by the  Government of India . It is a  public sector undertaking  whose operations are overseen by the  Ministry of Petroleum and Natural Gas .

3. ALL ABOUT COMPANY Type Public Traded as NSE :  ONGC BSE :  500312 BSE SENSEX Constituent NSE NIFTY 50 Constituent Industry Energy :  Oil and gas Founded 14 August 1956; 65 years ago Headquarters Dehradun ,  Uttarakhand , India Key people Alka Mittal  (Chairman) Revenue  ₹539,199 crore  (US$71 billion) (2022) Net income  ₹47,830 crore  (US$6.3 billion) (2022) Total assets ₹585,449 crore  (US$77 billion) (2022) Total equity ₹259,502 crore  (US$34 billion) (2022) Owner Government of India  (60.41%) [3]

4. CASH FLOW STATEMENT Particulars Mar'21 Mar'20 Mar'19 Mar'18 Profit Before Tax 11246.44 13444.54 26715.79 19945.26 Net Cash Flow from Operating Activity 27665.09 57785.25 42252.01 37536.85 Net Cash Used in Investing Activity -20656.96 -34958.26 -22019.85 -53730.38 Net Cash Used in Financing Activity -6984.25 -22747.10 -20245.61 16180.47 Net Inc/Dec In Cash and Cash Equivalent 23.88 79.88 -13.46 -13.06 Cash and Cash Equivalent - Beginning of the Year 96.03 16.14 29.60 42.66 Cash and Cash Equivalent - End of the Year 119.90 96.03 16.14 29.60

5. SHAREHOLDINGS

6. VALUATION RATIOS Net Debt 1,117,761.6 Price to Cash Flow 2.05 Book Value/Share 206.28 Quick Ratio 0.25 Current Ratio 0.83 2:1 LT Debt to Equity 34.7% Total Debt to Equity 47.78% 1-1.5

7. PEER COMPARISONS COMPANY PRICE MARKET CAPITAL (cr) Asian Energy 87.25 0.58% 332.20 Gujarat Natural 16.40
-3.53% 131.61 Aban Offshore 43.85
-0.79% 255..93 Cals Refineries 0.10 0.00% 82.94

8. MOAT [Competitive Advantage]  has  highly skilled human resource with excellent technical and management capabilities . ONGC has a unique and distinct advantage in terms of being a horizontally integrated player, with in-house infrastructure for oil field services. Experienced and professionally competent manpower is another huge advantage with ONGC.

9. Discounted cash flow valuation It is a valuation method used to estimate the value of an investment based on its expected future cash flows

10. DCF of ONGC

11. INDUSTRY OUTLOOK The energy sector is capital intensive, which makes paying special attention to leverage important. The four key ratios for analysts and investors to use when analyzing the energy sector include—debt-to-EBITDA, interest coverage ratio, debt-to-capital, and debt-to-equity. Debt can increase shareholder returns, as the cost of debt is lower than the cost of equity. Too much debt can become burdensome and limit a company's ability to meet other obligations or get financing for new projects/equipment.

12. Economic outlook PE Ratio (x) 3.66 EPS - TTM (₹) 36.19 M Cap (₹ Cr.) 1,66,625 PB Ratio (x) 0.59 Div Yield (%) 7.93 Face Value (₹) 5.00

13. COMPETITIVE RIVALRY IN MARKET THREAT OF SUBSTITUTES ONGC operates in a naturally competitive market sector. As it is a Public sector enterprise, it faces intense competitive rivalry in the market. ONGC controls subsequent market share in the world’s second-most populous country. ONGC’s main competitors are Bharat Petroleum Corporation (BPCL), another Public sector entity and Reliance Industries, a private sector business conglomerate . The threat of substitute is moderate in the industry in the short term , but it is high in the medium to long term . There is growing pressure on the oil and gas industry to look for better alternatives as the sector has a substantial carbon emission footprint. The viable alternatives are Nuclear energy, hydrogen and renewable energy sources.

14. THREAT OF NEW ENTRANTS BARGAINING POWER OF BUYERS The sector is among the highly regulated sectors in the world, same is the case in India. Public sector entities mainly dominate the industry.  Besides state dominance, there is a stringent regulatory framework, and it has high compliance cost. Another barrier to entry in the sector is the required capital investment for operating in the industry. So it has low threat of entrants. Buyers do not possess high bargain power in the industry due to the full control of the production to distribution of oil and gas.   An end-user possesses somewhat high bargain power due to product in-differentiation and perceived quality. Other downstream companies do not hold high bargaining power .

15. BARGAINING POWER OF SUPPLIERS The bargaining power of the suppliers is moderate to high in the Indian oil and gas sector. The industry is dynamic in nature and crude oil, a significant raw material; fluctuate due to many underlying factors.