ONGC is an upstream company and its profit depends on the crude oil prices. However, due to weakness in global growth, tepid industrial growth in China and the ongoing trade war between the US and China have dampened the spirits of the stock. ... That is because, ONGC will see earnings fall by over Rs. 1,400 crore.

Will ONGC recover?

This is a steep recovery from the $19.33 a barrel lows reported on April 21. Oil exploration and production companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) are not expecting this price recovery to be the last moment shot-in-the-arm to salvage the difficult 2020-2021.

Is ONGC undervalued?

Both these stocks are available at very attractive valuations, and there is no reason why the discounting should be so low. For example, ONGC trades at a p/e of just 5-6 times, one year forward earnings. ... In terms of price to book value too, these stocks are highly undervalued at around 0.50 to 0.60 times.