ONGC Trails Zomato in Market Value Despite Strong Asset Holdings
ONGC was India's most valuable company with a market capitalization of Rs 2.44 lakh crore in 2012, ahead of IT giant TCS and energy major Reliance Industries.
New Delhi: State-owned Oil and Natural Gas Corporation (ONGC), valued at around Rs 3.10 lakh crore, now trails food delivery firm Zomato despite its stakes in subsidiaries and minority investments accounting for over a third of its market capitalisation, indicating India's largest oil and gas producer is potentially undervalued.
Market capitalisation of a listed company corresponds to the cumulative market price of all its shares. As of the Friday closing, ONGC is ranked 25th according to market capitalization, the BSE data showed. "The oil and gas major had a market value of Rs 3.097 lakh crore, lower than Rs 3.36 lakh crore of Eternal Ltd (formerly known as Zomato), Hindustan Aeronautics Ltd (Rs 3.23 lakh crore) and Titan Company (Rs 3.13 lakh crore),” the BSE data said.
ONGC was India's most valuable company with a market capitalization of Rs 2.44 lakh crore in 2012, ahead of IT giant TCS and energy major Reliance Industries. While ONGC's market capitalisation rose by just 26 per cent over the past 13 years, other listed firms have seen quantum jumps.
Reliance has seen its valuation soar from Rs 2.43 lakh crore in July 2012 to Rs 18.7 lakh crore at Friday's close. Tata Consultancy Services (TCS), which jostled with ONGC for the top slot in the past, saw its market capitalisation jump from Rs 2.42 lakh crore in July 2012 to Rs 10.95 lakh crore now.
Reliance leads the pack, followed by HDFC Bank (Rs 15.07 lakh crore), Bharti Airtel (Rs 11.05 lakh crore) and TCS. However, analysts suggest that the market has not fully priced in the value of ONGC's diverse portfolio, which includes significant stakes in overseas investment firm ONGC Videsh, Mangalore Refinery and Petrochemicals Limited, and other strategic assets.
ONGC holds a 71.63 per cent stake in MRPL, which is worth over Rs 18,000 crore. Its 54.9 per cent stake in refiner Hindustan Petroleum Corporation Ltd (HPCL) is worth about Rs 52,770 crore. Besides, ONGC has a minority stake in Indian Oil Corporation - 14.20 per cent worth Rs 31,000 crore - and gas utility GAIL (India) Ltd - 5 per cent valued at about Rs 5,900 crore.