InvestorQ : What are the prospects of ONGC in the near future
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What are the prospects of ONGC in the near future

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Juvina Maggie answered.
3 weeks ago
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ONGC is a stock I would be very cautious on. Both its main products, oil and gas is globally going through a major price compression. Most of the gas finds of ONGC are likely to be almost unviable at the current prices offered. That is not a great situation to be in.

Secondly, over the last few years, ONGC cash reserves have dipped sharply and it has reached a situation wherein it is much lower than what a typical oil extraction company should have. Also it has very few sources of diversification of its risk, unlike RIL which has a strong digital and retail franchise.
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