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  1. Zomato parent Eternal's market cap surpasses ONGC despite PSU’s huge asset holdings

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Zomato parent Eternal's market cap surpasses ONGC despite PSU’s huge asset holdings

Upstox

4 min read | Updated on October 12, 2025, 15:35 IST

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SUMMARY

ONGC was India's most valuable company with a market capitalisation of ₹2.44 lakh crore in 2012, ahead of IT giant TCS and energy major Reliance Industries

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As of Friday, ONGC is ranked 25th according to market capitalisation, according to BSE data. Image: Shutterstock

As of Friday, ONGC is ranked 25th according to market capitalisation, according to BSE data. Image: Shutterstock

State-owned Oil and Natural Gas Corporation (ONGC), valued at around ₹3.10 lakh crore, now trails food delivery firm Zomato. This is despite the fact that ONGC has stakes in Zomato's subsidiaries and minority investments, accounting for over a third of the latter's market capitalisation. It might also indicate that India's largest oil and gas producer is potentially undervalued.

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At the close of trading on Friday, ONGC had a market value of ₹3.097 lakh crore, lower than the ₹3.36 lakh crore of Eternal Ltd (formerly known as Zomato), Hindustan Aeronautics Ltd (₹3.23 lakh crore) and Titan Company (₹3.13 lakh crore), according to BSE data.

ONGC was India's most valuable company with a market capitalisation of ₹2.44 lakh crore in 2012, ahead of IT giant TCS and energy major Reliance Industries.

While ONGC's market capitalisation rose by just 26% over the past 13 years, other listed firms have seen quantum jumps.

Reliance has seen its valuation soar from ₹2.43 lakh crore in July 2012 to ₹18.7 lakh crore at Friday's close. Tata Consultancy Services (TCS), which jostled with ONGC for the top slot in the past, saw its market capitalisation jump from ₹2.42 lakh crore in July 2012 to ₹10.95 lakh crore now.

A listed company's market capitalisation corresponds to the cumulative market price of all its shares.

As of Friday, ONGC is ranked 25th according to market capitalisation, according to BSE data.

Reliance leads the pack, followed by HDFC Bank (₹15.07 lakh crore), Bharti Airtel (₹11.05 lakh crore) and TCS.

Analysts suggest that the market has not fully priced in the value of ONGC's diverse portfolio, which includes significant stakes in overseas investment firm ONGC Videsh, Mangalore Refinery and Petrochemicals Limited, and other strategic assets.

ONGC holds a 71.63% stake in MRPL, which is worth over ₹18,000 crore. Its 54.9% stake in refiner Hindustan Petroleum Corporation Ltd (HPCL) is worth about ₹52,770 crore.

Besides, ONGC has a minority stake in Indian Oil Corporation—14.20% worth ₹31,000 crore—and gas utility GAIL (India) Ltd—5% valued at about ₹5,900 crore.

The combined value of its stake in subsidiaries MRPL and HPCL and minority investments in other listed companies comes to over ₹1.07 lakh crore—more than a third of its current mcap.

Oil Minister Hardeep Singh Puri last month rued that state-owned oil public sector undertakings (PSUs) are significantly undervalued by the market. He emphasised that, despite their profitability and essential role in the economy, investors display a "perception bias," which unfairly suppresses their market value.

Puri noted that in the last six years, the three major oil marketing companies (OMCs)—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—had a collective profit of ₹2.5 lakh crore. Apart from them, ONGC reported a standalone net profit of ₹1.16 lakh crore in the last three financial years. It paid a total dividend of ₹12.25 for every share of Rs 5.

In comparison, Eternal had a net profit of just ₹527 crore in FY25.

Swiggy, which has an mcap of ₹1.08 lakh crore, reported a consolidated loss of ₹3,116.8 crore for FY25.

Market watchers say a reassessment of ONGC's valuation could lead to an upward revision, reflecting the true worth of its investments and strengthening investor confidence.

Last week's market

The equity benchmark indices extended their winning streak for the second week on Friday, October 10. The NIFTY50 surged 391.10 points, or 1.6%, during the week, while the BSE SENSEX added 1,293.65 points, or 1.6%.

On the NIFTY50 index, Max Healthcare emerged as the top gainer of the week, climbing 8.2%. HCL Technologies and Eternal were also among the main contributors, gaining 7.3% and 6%, respectively. Infosys (4.7%) and Tata Consultancy Services (4.4%) also added strong momentum to the index.

On the flip side, Tata Motors (-5.2%), Trent (-2.6%), HDFC Life Insurance Company (-1.6%), Tata Consumer Products (-1%), and Hindalco Industries (-0.8%) ended as the week’s biggest losers.

On Friday, the S&P BSE SENSEX closed at the 82,500.82 level, rising 328.72 points, or 0.40%, while the 50-share index NIFTY50 closed at the 25,285.35 level, gaining 103.55 points, or 0.41%.

With PTI inputs
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