A like-for-like valuation of ONGC (ONGC) and POWER GRID CORPORATION OF INDIA (POWERGRID), each built from its own filed accounts and set side by side — price against estimated worth, on the same measures.
POWER GRID CORPORATION OF INDIA is priced further below its estimated worth than ONGC.
POWER GRID CORPORATION OF INDIA trades 84% below our estimate of fair value, against 17% below our estimate of fair value for ONGC. A wider discount is not automatically the safer buy — it can equally mean the market sees a risk the accounts do not show yet — but on price against estimated value, POWER GRID CORPORATION OF INDIA is the cheaper of the two today.
Every figure below is drawn from each company's own filed statements. Estimated fair value is the per-share figure our engine will stand behind; where a business needs a model that does not reduce to one number, it is shown as “—”.
| ONGCONGC | POWER GRID CORPORATION OF INDIAPOWERGRID | |
|---|---|---|
| Current price | ₹236 | ₹263 |
| Market cap | ₹2.97L Cr | ₹2.44L Cr |
| Estimated fair value | ₹276 | ₹484 |
| Upside to fair value | +17% | +84% |
| P/E | 6.8 | 15.4 |
| P/B | 0.80 | 2.43 |
| Return on equity | —% | —% |
| Debt to equity | 0.48 | 0.61 |
| Valued on | Discounted cash flow | Excess return — the correct lens for a regulated utility |
Two state-controlled energy giants on regulated economics.
Worked backwards from today's share price: the rate each company must sustain to justify what it costs, against what its own ten-year record supports.
Same method, same filed accounts — each of these works both companies through to a fair value.
POWER GRID CORPORATION OF INDIA trades 84% below our estimate of fair value, against 17% below our estimate of fair value for ONGC. A wider discount is not automatically the safer buy — it can equally mean the market sees a risk the accounts do not show yet — but on price against estimated value, POWER GRID CORPORATION OF INDIA is the cheaper of the two today.
Each company is valued from its own filed financial statements — ten years of results — using the method that fits that business, then set beside the other on price, valuation multiples, return on equity and what today's share price already assumes. It is a like-for-like comparison of the workings, not investment advice.
No — and that is deliberate. ONGC is valued on discounted cash flow, POWER GRID CORPORATION OF INDIA on excess return — the correct lens for a regulated utility, because the two businesses do not work the same way. Forcing one model onto both would misstate at least one of them, so each is valued on the lens that fits it and only the conclusions are compared.