**Why India’s Largest Oil Producer Has a Lower Market Cap Than Zomato**
*By Dwaipayan Roy | Oct 12, 2025, 06:21 PM*
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**What’s the story?**
Oil and Natural Gas Corporation (ONGC), India’s largest oil and gas producer, is currently perceived as undervalued by the market. Despite having a market capitalization of approximately ₹3.1 lakh crore, the state-owned company is trailing behind the food delivery giant Zomato in terms of market value.
This discrepancy stems from the fact that over a third of ONGC’s total market capitalization comes from its stakes in subsidiaries and minority investments, which the market seems to have discounted.
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**Market Comparison**
When comparing market cap growth over the last 13 years, ONGC’s valuation has increased by only 26%. This is modest in contrast to other major listed companies. For example:
– **Reliance Industries**’ market cap surged from ₹2.43 lakh crore in July 2012 to ₹18.7 lakh crore today.
– **Tata Consultancy Services (TCS)** rose from ₹2.42 lakh crore to ₹10.95 lakh crore in the same period.
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**Portfolio Value: ONGC’s Stakes in Subsidiaries and Minority Investments**
ONGC holds significant stakes in various subsidiaries, including:
– A 71.63% stake in **Mangalore Refinery and Petrochemicals Limited (MRPL)**, valued over ₹18,000 crore.
– A 54.9% stake in **Hindustan Petroleum Corporation Ltd (HPCL)**, worth about ₹52,770 crore.
Additionally, ONGC owns minority stakes in other leading firms:
– 14.20% in **Indian Oil Corporation**, valued at ₹31,000 crore.
– 5% in **GAIL (India) Ltd**, worth approximately ₹5,900 crore.
Together, the total value of ONGC’s stakes in MRPL, HPCL, and minority investments surpasses ₹1.07 lakh crore, which is more than a third of ONGC’s current market capitalization.
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**Government Perspective: Perception Bias Against PSUs**
Oil Minister Hardeep Singh Puri recently expressed concern over the market’s undervaluation of state-owned oil Public Sector Undertakings (PSUs). He noted that despite their strong profitability and significant contributions to the economy, PSUs suffer from a “perception bias” among investors that keeps their market valuations suppressed.
Minister Puri also highlighted that in the last six years, three major oil marketing companies—**Indian Oil, Bharat Petroleum, and Hindustan Petroleum**—have collectively earned profits amounting to ₹2.5 lakh crore.
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**Conclusion**
While ONGC remains India’s largest oil producer, its market capitalization and valuation have not kept pace with private sector companies like Zomato, Reliance, and TCS. The undervaluation appears to be influenced by market perception biases and incomplete pricing of its extensive portfolio of subsidiaries and investments. This gap presents potential opportunities for investors who recognize the intrinsic value held within ONGC’s diversified assets.
https://www.newsbytesapp.com/news/business/ongc-s-market-cap-growth-lags-behind-peers/story
