ONGC'S STRATEGIC ODYSSEY: CHARTING A COURSE THROUGH UNCHARTED FINANCIAL WATERS TO ACHIEVE SUSTAINABLE GROWTH AND OPTIMAL LEVERAGE

Abstract

This study explores the relationship between capital structure and firm value at Oil and Natural Gas Corporation Limited (ONGC) from 2014 to 2024. Through a detailed analysis of financial data, we examine how debt and equity influence profitability, specifically through Return on Equity (ROE). Our findings indicate a positive correlation between ROE and firm value, underscoring the significance of effective capital allocation in enhancing shareholder returns. Both equity and debt show a strong positive relationship with overall firm value, suggesting that an optimized capital management strategy can maximize shareholder wealth. This research offers valuable insights for large enterprises in the energy sector, highlighting the necessity of a balanced capital structure that promotes growth while managing financial risks. Ultimately, our results emphasize the critical role of strategic capital structure management in driving firm value and maximizing returns for shareholders at ONGC.