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Today's prices ask more of ONGC than of Coal India.
At current prices, buyers of Coal India are assuming about 0% growth against 10% in its own record; for ONGC it is 0% against 0%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: Coal India compounded at about 9% a year (FY2018–FY2026) and ONGC at about 8% (FY2018–FY2026).
- What to watch: volumes at Coal India; crude oil prices at ONGC.
| Coal India | ONGC | |
|---|---|---|
| Price | ₹404 | ₹225 |
| Market cap | ₹2.49L Cr | ₹2.83L Cr |
| P/E | 8.0 | 5.7 |
| P/B | 2.09 | 0.76 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
Most of India's coal, from one company
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. Through subsidiaries such as Mahanadi Coalfields, South Eastern Coalfields and Northern Coalfields, it produces roughly three-quarters of the coal mined in India.
India's oil and gas producer — and a refiner too
Oil and Natural Gas Corporation is India's largest producer of crude oil and natural gas, majority-owned by the Government of India. Its overseas arm, ONGC Videsh, holds oil and gas assets in other countries.
02The records side by side
On revenue the two have grown at much the same pace: Coal India compounded at about 9% a year (FY2018–FY2026) and ONGC at about 8% (FY2018–FY2026). By revenue, ONGC is about 3.9 times the size of Coal India. Coal India kept 18.5% of revenue as net profit in FY2026; ONGC kept 7.5% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Coal India · ONGC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- VolumesIndia's power demand still leans heavily on coal, so output has kept growing.
- E-auction premiumsCoal sold at auction earns far more than contract coal; the premium swings with demand and imported-coal prices.
- Crude oil pricesHigher prices lift ONGC's realisations, though government levies have capped the gains in the past.
- Production volumesMany fields are mature; new deep-water projects need to offset natural decline.
05What could go wrong
- Energy transitionOver the long term, renewables will reduce coal demand.
- Private and captive miningMore coal mined by others reduces Coal India's share.
- Government interventionWindfall taxes and pricing controls have taken away upside before.
- Field declineWithout new discoveries, output falls year after year.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Coal India or ONGC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Coal India trades at 8.0 times earnings and 2.09 times book value, and ONGC at 5.7 times earnings and 0.76 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Coal India and ONGC?
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. Oil and Natural Gas Corporation is India's largest producer of crude oil and natural gas, majority-owned by the Government of India.
Are Coal India and ONGC valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Coal India and ONGC?
Worked backwards from the share price, Coal India needs about 0% growth and ONGC about 0% growth, against 10% and 0% in their own records.