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NTPC and ONGC are valued in different ways.
NTPC is valued on excess return and ONGC on discounted cash flow, because the two businesses do not work the same way. Below, each is set out on its own record and its own value drivers; the two fair values sit in the full valuations.
- Valuation method: NTPC on excess return; ONGC on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: NTPC has grown revenue faster: NTPC compounded at about 10% a year (FY2019–FY2026) and ONGC at about 8% (FY2018–FY2026).
- What to watch: regulated equity growth at NTPC; crude oil prices at ONGC.
| NTPC | ONGC | |
|---|---|---|
| Price | ₹319 | ₹225 |
| Market cap | ₹3.09L Cr | ₹2.83L Cr |
| P/E | 10.4 | 5.7 |
| P/B | 1.52 | 0.76 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Discounted cash flow |
01Two businesses
Coal, regulation and a renewable future
NTPC is India's largest power generator and is majority-owned by the Government of India. Most of its capacity is coal-fired, with gas, hydro and a fast-growing renewable portfolio held largely through NTPC Green Energy, which was listed separately in November 2024.
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
NTPC has grown revenue faster: NTPC compounded at about 10% a year (FY2019–FY2026) and ONGC at about 8% (FY2018–FY2026). By revenue, ONGC is about 3.5 times the size of NTPC. NTPC kept 14.7% of revenue as net profit in FY2026; ONGC kept 7.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: NTPC · 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
- Regulated equity growthEvery rupee of approved capex adds to the base on which NTPC earns its allowed return.
- Plant availabilityFull fixed-cost recovery depends on keeping plants available to run.
- 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
- Regulatory changesA lower allowed return in a future tariff period would reduce value directly.
- Coal's long-term futureThermal plants may run less as renewables grow.
- 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 NTPC 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, NTPC trades at 10.4 times earnings and 1.52 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 NTPC and ONGC?
NTPC is India's largest power generator 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 NTPC and ONGC valued the same way?
No. NTPC is valued on excess return and ONGC on discounted cash flow, because forcing one model onto both would misstate at least one of them.
What does today's price assume for NTPC and ONGC?
Worked backwards from the share price, NTPC needs about 12.4% return on equity and ONGC about 0% growth, against 14.1% and 0% in their own records.