India’s largest oil and gas producer, Oil and Natural Gas Corporation (ONGC), has slipped behind food delivery major Zomato in market capitalisation — a striking contrast given ONGC’s vast portfolio of tangible assets and profitable subsidiaries. Analysts say the trend highlights a potential undervaluation of the state-run energy giant.
ONGC’s Market Cap Falls Behind New-Age Peers
As of Friday’s close, ONGC’s market capitalisation stood at ₹3.10 trillion, trailing Zomato’s ₹3.36 trillion, Hindustan Aeronautics Ltd’s ₹3.23 trillion, and Titan Company’s ₹3.13 trillion, according to BSE data.
In 2012, ONGC was India’s most valuable listed company, with a market cap of ₹2.44 trillion — ahead of both Tata Consultancy Services (TCS) and Reliance Industries (RIL). Over the past 13 years, however, its valuation has grown just 26%, while peers have seen exponential gains.
- Reliance Industries: ₹2.43 trillion (2012) → ₹18.7 trillion (2025)
- TCS: ₹2.42 trillion (2012) → ₹10.95 trillion (2025)
Currently, ONGC ranks 25th among listed Indian companies by market cap, far below its former top-tier position.
Undervalued Despite Strong Asset Base
Market experts argue that ONGC’s valuation does not reflect the strength of its diverse and profitable holdings.
The company’s investments and subsidiaries collectively account for over one-third of its current market value, including:
- 71.63% stake in Mangalore Refinery and Petrochemicals Ltd (MRPL) worth over ₹18,000 crore
- 54.9% stake in Hindustan Petroleum Corporation Ltd (HPCL) worth ₹52,770 crore
- 14.2% stake in Indian Oil Corporation (IOC) worth ₹31,000 crore
- 5% stake in GAIL (India) Ltd worth about ₹5,900 crore
Together, these holdings are valued at ₹1.07 trillion, highlighting the market’s disconnect with ONGC’s intrinsic worth.
Profitability vs. Market Perception
Oil Minister Hardeep Singh Puri recently criticised the “perception bias” that keeps public sector oil companies undervalued despite consistent profitability.
He noted that in the past six years, Indian Oil, Bharat Petroleum, and Hindustan Petroleum earned ₹2.5 trillion in collective profits, while ONGC alone reported ₹1.16 trillion in standalone profit over the last three years and paid a total dividend of ₹12.25 per ₹5 share.
In comparison, Zomato (Eternal Ltd) reported a net profit of ₹527 crore in FY25, while rival Swiggy—valued at ₹1.08 trillion—posted a loss of ₹3,116.8 crore in the same year.
Analysts See Re-Rating Potential
Analysts believe ONGC’s robust asset portfolio, steady cash flows, and dividend track record may prompt a re-rating if investor sentiment shifts toward value-driven stocks. A reassessment could not only realign ONGC’s market value with its intrinsic worth but also strengthen confidence in India’s energy PSUs, which remain vital to the country’s economic and industrial base.
Summary
ONGC, once India’s most valuable company, now trails Zomato in market capitalisation despite holding over ₹1 trillion in strategic assets. Analysts attribute the gap to perception bias and undervaluation of PSUs. Experts expect a potential re-rating as markets reassess the intrinsic value of ONGC’s diversified investments and steady profitability.
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