ONGC Hits 4 Lakh Crore Market Cap; Overtakes Maruti

Dominance in Domestic Production

Maharatna Oil and Natural Gas Corporation (ONGC) stands as the largest crude oil and natural gas company in India, contributing approximately 71% to the nation’s domestic production. Crude oil, the essential raw material supplied by ONGC, is utilized by downstream companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Mangalore Refinery and Petrochemicals Limited (MRPL) to produce a variety of petroleum products, including petrol, diesel, kerosene, naphtha, and cooking gas (LPG). Notably, HPCL and MRPL are subsidiaries of ONGC.

Recent Stock Performance

Shares of ONGC have recently reached a decadal high, surging by 3.70% to a peak of Rs 320.70 per share on the NSE. This upward trend has been observed over the past few trading sessions, with the stock jumping over 16% in July 2024 alone. Impressively, the stock has risen by a staggering 55.5% in 2024. ONGC holds the second-highest weightage in the Nifty Oil & Gas index, with a 15.31% share, following Reliance Industries.

Market Capitalisation Milestone

With Monday’s surge, ONGC achieved a significant milestone by crossing the 4-lakh crore mark in market capitalisation, making it India’s 14th most valuable company within the Nifty50 index. The stock surpassed the market capitalisation of Maruti Suzuki India.

Impact on the Nifty Oil & Gas Index

The Nifty Oil & Gas Index gained 1.60% on Monday, hitting a record high primarily due to ONGC’s performance. In July, the index has seen an overall increase of about 7%, and for 2024, it has risen by 37.62%. ONGC has outperformed the Oil & Gas index by a wide margin, highlighting its strong performance in the sector.

Dividend Performance

Over the past 12 months, ONGC has declared 57 dividends since August 29, 2000. In this period, the company declared an equity dividend amounting to Rs 10.25 per share, with a dividend yield standing at 3.24%.

In summary, ONGC’s robust performance in both stock market metrics and dividend distribution underscores its pivotal role in India’s energy sector and its significant value to investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.