Zomato outpaces ONGC in market cap, but is ONGC undervalued? Explore why ONGC’s robust assets and profits signal it may be undervalued in India’s energy sector.
New Delhi | October 12, 2025 | The Interview Times —India’s state-owned Oil and Natural Gas Corporation (ONGC), once the nation’s most valuable company, is now grappling with questions about whether ONGC is undervalued as it trails behind Eternal Ltd (formerly Zomato) in market capitalization.
Analysts are debating whether ONGC is undervalued given its vast asset portfolio and consistent profitability. This article explores why ONGC is undervalued and whether it presents a hidden investment opportunity in India’s energy market.
Is ONGC Undervalued Compared to Zomato?
As of October 11, 2025, ONGC’s market capitalization stood at Rs 3.10 lakh crore, surpassed by Eternal Ltd (Zomato) at Rs 3.36 lakh crore, Hindustan Aeronautics Ltd (Rs 3.23 lakh crore), and Titan Company (Rs 3.13 lakh crore).
This places ONGC at the 25th spot in India’s market capitalization rankings—a sharp decline from 2012, when it led with a market cap of Rs 2.44 lakh crore, outranking giants like Tata Consultancy Services (TCS) and Reliance Industries. The question of whether ONGC is undervalued arises as Zomato’s rapid market cap growth overshadows ONGC’s robust fundamentals.
While ONGC’s market value has grown modestly by 26% over the past 13 years, competitors have seen exponential gains:
- Reliance Industries soared from Rs 2.43 lakh crore to Rs 18.7 lakh crore.
- TCS expanded from Rs 2.42 lakh crore to Rs 10.95 lakh crore.
This disparity fuels discussions about whether ONGC is undervalued, especially when compared to Zomato’s meteoric rise despite ONGC’s strong assets and earnings.
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Why Is ONGC Undervalued?
Analysts argue that ONGC is undervalued because the market fails to fully recognize its extensive asset portfolio. ONGC holds significant stakes in subsidiaries and strategic investments, including:
- 71.63% stake in Mangalore Refinery and Petrochemicals Ltd, valued at over Rs 18,000 crore.
- 54.9% stake in Hindustan Petroleum Corporation Ltd, worth approximately Rs 52,770 crore.
- 14.20% stake in Indian Oil Corporation, valued at Rs 31,000 crore.
- 5% stake in GAIL (India) Ltd, worth Rs 5,900 crore.
These holdings, totalling over Rs 1.07 lakh crore, account for more than a third of ONGC’s current market capitalization. Yet, the market continues to question whether ONGC is undervalued, particularly when compared to Zomato’s higher market cap despite its smaller operational scale. This suggests that ONGC is undervalued relative to its intrinsic worth.
ONGC’s Strong Profits Highlight Its Undervaluation
ONGC’s financial performance remains robust, with a standalone net profit of Rs 1.16 lakh crore over the past three fiscal years. In contrast, Eternal Ltd (Zomato) reported a modest Rs 527 crore in net profit for FY25, underscoring why many believe ONGC is undervalued.
Oil Minister Hardeep Singh Puri recently addressed this issue, noting that public-sector oil companies, including ONGC, are undervalued despite their strong earnings and asset base. Industry experts agree, suggesting that ONGC is undervalued due to a market oversight that could present opportunities for investors.
Can ONGC Overcome Being Undervalued?
As India navigates its energy future in a dynamic global market, addressing the perception that ONGC is undervalued could unlock significant value for investors. ONGC’s robust asset portfolio, consistent profitability, and strategic stakes position it as a cornerstone of India’s energy sector. Correcting the narrative that ONGC is undervalued could restore investor confidence and elevate its market standing, even as it competes with high-flying stocks like Zomato.
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Key Takeaways
- ONGC’s market cap of Rs 3.10 lakh crore is surpassed by Zomato (Rs 3.36 lakh crore), raising questions about whether ONGC is undervalued.
- Despite a 26% growth in market value since 2012, ONGC lags behind peers like Reliance and TCS.
- ONGC’s subsidiary stakes and investments, worth over Rs 1.07 lakh crore, contribute to the perception that ONGC is undervalued.
- ONGC’s net profit of Rs 1.16 lakh crore over three years dwarfs Zomato’s Rs 527 crore in FY25.
Is ONGC Undervalued a Golden Investment Opportunity?
With its strong fundamentals and signs that ONGC is undervalued, the company presents a compelling case for investors. As market perceptions shift and India’s energy sector gains prominence, addressing whether ONGC is undervalued could position it as a top investment choice compared to stocks like Zomato.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Investing in stocks, including ONGC, involves risks, and past performance is not indicative of future results. Readers are advised to conduct their own research, consult with a qualified financial advisor, and carefully consider their financial situation before making any investment decisions. The Interview Times is not responsible for any financial losses or damages resulting from investment decisions based on this article.
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