**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 perceived as undervalued by the market. Despite having a market capitalization of around ₹3.1 lakh crore, ONGC trails behind food delivery giant Zomato in terms of market value.
This discrepancy largely stems from the fact that ONGC’s stakes in subsidiaries and minority investments account for over a third of its total market capitalization, which the market has not fully priced in.
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**Market Comparison: ONGC vs. Major Indian Companies**
Over the past 13 years, ONGC’s market capitalization has grown by only 26%. In contrast, other listed Indian companies have experienced phenomenal growth in valuations:
– **Reliance Industries**’ market cap surged from ₹2.43 lakh crore in July 2012 to ₹18.7 lakh crore today.
– **Tata Consultancy Services (TCS)** saw its market value rise from ₹2.42 lakh crore in July 2012 to ₹10.95 lakh crore now.
This stark contrast highlights the sluggish market growth of ONGC despite its dominant position in the oil and gas sector.
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**Value of ONGC’s Portfolio: Stakes in Subsidiaries and Minority Investments**
ONGC holds significant stakes in several subsidiaries and other companies, yet the market has yet to fully appreciate these assets’ value:
– A **71.63% stake in Mangalore Refinery and Petrochemicals Limited (MRPL)**, valued at over ₹18,000 crore.
– A **54.9% stake in Hindustan Petroleum Corporation Ltd (HPCL)**, worth approximately ₹52,770 crore.
In addition, ONGC has minority stakes in:
– **Indian Oil Corporation** – 14.2%, valued at ₹31,000 crore
– **GAIL (India) Ltd** – 5%, worth about ₹5,900 crore
Combined, the total value of ONGC’s stakes in subsidiaries and minority investments exceeds ₹1.07 lakh crore — more than a third of its current market capitalization.
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**Government Perspective: Addressing Market Perception**
Oil Minister Hardeep Singh Puri recently expressed concern over the market’s undervaluation of state-owned oil public sector undertakings (PSUs). He stated that despite these PSUs’ strong profitability and significant contribution to the economy, investors harbor a “perception bias” that suppresses their market value.
Minister Puri also highlighted that over the past six years, India’s three major oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—have collectively generated profits totaling ₹2.5 lakh crore.
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**Conclusion**
While ONGC remains India’s largest oil producer with substantial assets and stakes in profitable subsidiaries, the market has yet to fully value its diversified portfolio. Addressing the perception bias around PSUs could unlock significant value for investors in the sector.
https://www.newsbytesapp.com/news/business/ongc-s-market-cap-growth-lags-behind-peers/story