**Why India’s Largest Oil Producer Has a Lower Market Cap Than Zomato**
*By Dwaipayan Roy | Oct 12, 2025, 6:21 PM*
—
**Overview**
Oil and Natural Gas Corporation (ONGC), India’s largest oil and gas producer, is currently perceived as undervalued in the stock market. Despite boasting a market capitalization of approximately ₹3.1 lakh crore, the state-owned enterprise is trailing behind Zomato, a food delivery giant, in terms of market value. This valuation gap highlights an intriguing disparity given ONGC’s significant presence in the energy sector.
—
**Understanding the Valuation Discrepancy**
A key factor behind ONGC’s relatively modest market cap is that more than one-third of its value comes from stakes in subsidiaries and minority investments. These holdings are not fully reflected in its market valuation, leading to what many consider an undervaluation of the company.
—
**Market Comparison: ONGC vs. Reliance & TCS**
ONGC’s market capitalization has grown by only 26% over the past 13 years. In stark contrast, other major Indian companies have witnessed explosive growth in their valuations. For example:
– Reliance Industries’ market cap rose from ₹2.43 lakh crore in July 2012 to ₹18.7 lakh crore in 2025.
– Tata Consultancy Services (TCS) increased its market cap from ₹2.42 lakh crore to ₹10.95 lakh crore during the same period.
This comparison underscores how ONGC’s valuation growth has lagged behind other top-tier companies.
—
**The Value Hidden in ONGC’s Portfolio**
ONGC’s portfolio is diverse and substantial. It holds major stakes in several subsidiaries that collectively add significant value:
– **Mangalore Refinery and Petrochemicals Limited (MRPL):** 71.63% stake worth over ₹18,000 crore.
– **Hindustan Petroleum Corporation Limited (HPCL):** 54.9% stake valued at around ₹52,770 crore.
Additionally, ONGC has minority stakes in other notable listed companies:
– Indian Oil Corporation (14.2% stake worth ₹31,000 crore)
– GAIL (India) Ltd (5% stake worth about ₹5,900 crore)
The combined value of ONGC’s stakes in subsidiaries and minority investments exceeds ₹1.07 lakh crore, which is more than a third of its total current market capitalization.
—
**Government Perspective: Addressing the Undervaluation**
Oil Minister Hardeep Singh Puri recently addressed the issue, expressing concerns about the market’s perception of state-owned oil PSUs. He noted that despite their profitability and significant contributions to the Indian economy, these companies are undervalued due to a “perception bias” among investors.
Puri also highlighted that over the last six years, the three major oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—have collectively earned profits totaling ₹2.5 lakh crore, underscoring their financial strength.
—
**Conclusion**
ONGC’s lower market capitalization compared to companies like Zomato reflects a broader undervaluation challenge faced by India’s state-owned oil sector. Given its valuable portfolio and consistent profitability, there is growing optimism that the market will eventually recognize and reprice the company’s true worth. Until then, ONGC remains a compelling case of market undervaluation in India’s corporate landscape.
https://www.newsbytesapp.com/news/business/ongc-s-market-cap-growth-lags-behind-peers/story
