Case study

ONGC

ONGC

Worth a closer look1y model -8.1%

Each stock's 10,000-path forecast, rendered as light.

0Score

ONGC (ONGC) Stock Analysis & Case Study

Is ONGC a good buy? The data-driven verdict.

ONGC (ONGC) trades at ₹245,on the numbers it worth a closer look, a Downstox Snapshot Score of 55/100.

On the numbers, ONGC (ONGC) worth a closer look, a Downstox Snapshot Score of 55/100, weighing inexpensive at 7.4× earnings, ROE of 11.7%, a 38% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on ONGC

The single-digit P/E and near-5% dividend yield mark ONGC as a classic cheap energy cyclical, where the real question is whether that low rating reflects deep value or a market verdict that crude-linked earnings cannot grow durably. Decent ROCE and ROE show the upstream business still earns its keep, yet the middling Piotroski score of 4 suggests the recent operating trend is not clean. Watch whether free cash actually covers that fat payout across the price cycle, and how much of any windfall gets reinvested in declining fields versus returned. Cheapness here is a story about the denominator's stability, not just the multiple.

Downstox editorial view, written by our own analysts. Information, not investment advice.

ONGC fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹3.09L Cr
Current price
₹245
P/E ratio
7.4×
P/B ratio
0.83×
Book value
₹296
Dividend yield
4.99%
ROCE
14.2%
ROE
11.7%
Piotroski F-Score
4/9

Is ONGC overvalued? ONGC P/E vs its Energy

ONGC's P/E of 7.4× sits below the Energy peer median of 11.0×, so on earnings it screens cheaper than peers, while its 4.99% dividend yield is above the peer median of 4.23%.

ONGC P/E
7.4×
Peer median P/E
11.0×
ONGC div yield
4.99%
Peer median yield
4.23%

ONGC share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of ONGC history (-5%/yr drift, 27%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
ONGC 2027₹159₹226₹320-8%
ONGC 2028₹127₹209₹340-15%
ONGC 2029₹106₹191₹352-22%
ONGC 2030₹88₹176₹357-29%
ONGC 2031₹74₹163₹357-34%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability ONGC goes up, or doubles?

38%
Higher in 1 year
Modelled chance the price is above today in 12 months
25%
Higher in 5 years
Modelled chance the price is above today in 5 years
4%
Doubles in 5 years
Modelled chance of reaching ₹493 within 5 years

The bull case for ONGC

  • Trades at just 7.4× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection.
  • Low price-to-book of 0.83×, the market is paying little over the company's net assets.
  • Pays a 5.0% dividend yield, so you're partly paid to wait.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹352.

The bear case & risks

  • Return on equity is a soft 11.7%, capital efficiency trails higher-quality peers.
  • The probability model is cautious 12 months out, only a 38% chance of finishing above today's price.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹106.

ONGC volatility & expected range, how bumpy is the ride?

Over the last 2.0 years ONGC compounded at -5%/year with annualized volatility of 27%. That volatility implies a 1-year 80% range of ₹159₹320, the honest backbone behind any single price target.

ONGC price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
8.1%
80% range₹159–₹320
P(price ↑)38%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
22.3%
80% range₹106–₹352
P(price ↑)30%
P(price 2×)2%
5-Year Forecast
2031
₹0
Median (P50)
33.8%
80% range₹74–₹357
P(price ↑)25%
P(price 2×)4%

ONGC price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
ONGC simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds ONGC hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the ONGC price target & forecast page.

ONGC Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. ONGC scores 4/9,mixed financial health.

ONGC MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy ONGC with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox28.2%3.5×
Zerodha24.1%4.1×
Groww24.1%4.2×
DhanCHEAPEST22.0%4.5×

Compare every broker on the ONGC MTF page.

ONGC vs peers,Energy comparison

StockP/EDiv yieldMarket cap
ONGC (this stock)7.4×4.99%₹3.09L Cr
RELIANCE23.1×0.45%₹17.95L Cr
BPCL5.1×5.67%₹1.34L Cr
IOC4.8×4.85%₹2.04L Cr
GAIL15.4×4.23%₹1.17L Cr
IGL15.3×2.50%₹23,728 Cr
PETRONET11.0×3.49%₹42,982 Cr

About ONGC: sector, index & market-cap context

ONGC (ONGC) is a large-cap NSE-listed company in the Energy sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹3.09L Cr. See more Nifty 50 stocks.

How the ONGC Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of ONGC's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

ONGC analysis, FAQs

Is ONGC (ONGC) a good buy?

On the numbers, ONGC (ONGC) worth a closer look, a Downstox Snapshot Score of 55/100, weighing inexpensive at 7.4× earnings, ROE of 11.7%, a 38% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is ONGC overvalued or undervalued?

ONGC trades at 7.4× earnings versus a peer median of 11.0×, so it screens cheaper than its Energy peers.

What is the ONGC share price target for 2031?

ONGC's probability-weighted 2031 median target is ₹163, with an 80% range of ₹74₹357 (10,000-path Monte-Carlo).

What is the probability ONGC doubles in 5 years?

The modelled probability of ONGC reaching ₹493 (2×) within 5 years is 4%.

What is the bull case for ONGC?

Trades at just 7.4× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection. Low price-to-book of 0.83×, the market is paying little over the company's net assets. Pays a 5.0% dividend yield, so you're partly paid to wait.

What are the risks in ONGC?

Return on equity is a soft 11.7%, capital efficiency trails higher-quality peers. The probability model is cautious 12 months out, only a 38% chance of finishing above today's price.

More on ONGC