State-run Oil and Natural Gas Corporation (ONGC), valued at around Rs 3.10 lakh crore, now lags behind food delivery platform Zomato in market capitalisation despite owning stakes and assets worth more than a third of its own valuation — a gap analysts say reflects deep undervaluation of India’s largest oil and gas producer.As of Friday’s close, ONGC’s market value stood at Rs 3.097 lakh crore, lower than Eternal Ltd (formerly Zomato) at Rs 3.36 lakh crore, Hindustan Aeronautics Ltd at Rs 3.23 lakh crore, and Titan Company at Rs 3.13 lakh crore, according to BSE data, PTI reported.Once India’s most valuable firm with a market capitalisation of Rs 2.44 lakh crore in 2012 — ahead of Reliance Industries and Tata Consultancy Services (TCS) — ONGC’s valuation has risen just 26% in 13 years, even as peers saw exponential gains. Reliance now commands Rs 18.7 lakh crore and TCS Rs 10.95 lakh crore in market value.Analysts say the market has failed to price in ONGC’s extensive portfolio, which includes stakes in ONGC Videsh, Mangalore Refinery and Petrochemicals Ltd (MRPL), Hindustan Petroleum Corporation Ltd (HPCL), Indian Oil Corporation, and GAIL (India) Ltd.ONGC’s 71.63% holding in MRPL is valued at over Rs 18,000 crore, while its 54.9% stake in HPCL is worth around Rs 52,770 crore. It also owns 14.2% in IOC (worth Rs 31,000 crore) and 5% in GAIL (about Rs 5,900 crore). Together, these stakes are valued at over Rs 1.07 lakh crore — more than one-third of its current market cap.Oil Minister Hardeep Singh Puri recently said state-run oil PSUs remain “significantly undervalued” despite their profitability and critical role in the economy, citing investor “perception bias” as a key reason.Over the past three years, ONGC alone has reported a standalone profit of Rs 1.16 lakh crore and paid dividends totalling Rs 12.25 per Rs 5 share. In comparison, Eternal (Zomato) posted a profit of Rs 527 crore in FY25, while Swiggy, valued at Rs 1.08 lakh crore, reported a loss of Rs 3,116.8 crore.Market watchers believe a revaluation of ONGC’s true asset base could boost investor confidence and correct its relative undervaluation in India’s stock markets.
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