Last Updated on Sep 19, 2023 by Anjali Chourasiya
Table of Contents
Fundamentally strong oil and gas stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) | 5Y Avg Net Profit Margin | 5Y Avg Return on Investment (%) | Fundamental Score |
| Oil and Natural Gas Corporation Ltd | Oil & Gas – Exploration & Production | 2,34,810.91 | 186.75 | 6.63 | 42.29 | 5.90 | 8.78 | 10.00 |
| Jindal Drilling and Industries Ltd | Oil & Gas – Equipment & Services | 1,635.40 | 563.45 | 16.88 | 115.26 | -36.55 | -3.43 | 8.65 |
| Hindustan Oil Exploration Company Ltd | Oil & Gas – Exploration & Production | 2,265.99 | 169.10 | 11.68 | 10.52 | 38.31 | 15.01 | 7.75 |
| Reliance Industries Ltd | Oil & Gas – Refining & Marketing | 16,62,886.76 | 2,436.45 | 24.93 | 7.38 | 7.80 | 7.00 | 7.71 |
| Petronet LNG Ltd | Oil & Gas – Storage & Transportation | 36,150.00 | 238.30 | 10.87 | 13.45 | 7.56 | 21.00 | 7.33 |
| Confidence Petroleum India Ltd | Oil & Gas – Storage & Transportation | 2,561.18 | 89.50 | 27.60 | 16.16 | 5.52 | 11.38 | 7.07 |
Note: The data is from 19th September 2023. To get this list of oil and gas companies in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > Energy: Select all – Equipment & Services, Exploration & Production, Refining & Marketing, and Storage & Transportation
- 1Y Return
- 5Y Average Net Profit Margin
- 5Y Average Return on Investment
- Fundamental Score: Set to High – Sort from highest to lowest
Details of the top 3 oil and gas companies in India
Oil and Natural Gas Corporation Ltd (ONGC)
With a market cap of Rs. 2,34,810 cr., ONGC is a global energy holding company. The company is engaged in the exploration, development and production of crude oil and natural gas. Here’s a brief about ONGC’s financials and performance.
- The stock is 2.00x as volatile as Nifty.
- Over the last 5 yrs, the debt-to-equity ratio has been 49.79%, vs the industry average of 50.22%. During the same period, the net income has averaged 36.3% against the industry average of 30.69%. While these factors are positive, the stock’s revenue growth, current ratio, and free cash flow growth lag behind its industry average during the same period.
- As per the Tickertape Scorecard, the stock is underpriced and is not in the overbought zone. It has zero red flags and shows good signs of profitability, with a score of 7.3 out of 10. The stock has an average valuation.
Jindal Drilling and Industries Ltd
Engaged in drilling and related services, Jindal Drilling and Industries Ltd is a small-cap company with a market capitalisation of Rs. 1,635.40 cr. The company provides a range of services to companies involved in oil and gas exploration. Let’s have a look at the company’s financials and performance.
- The stock is risky compared to ONGC; it is 4.94x as volatile as Nifty.
- Over the last 5 yrs, the revenue growth has averaged 25.05%, vs the industry average of 2.46%, the net income has averaged 260.04% against the industry average of -7.19%, and the current ratio has been 134.53%, vs industry avg of 12.65%. The stock has been lagging in debt-to-equity ratio compared to its industry average during the same period.
- As per the Tickertape Scorecard, there are no red flags found. The stock has a profitability and performance score and is underpriced. On the other hand, the stock lags behind in the valuation and financial growth.
Hindustan Oil Exploration Company Ltd
With a market cap of ₹2,265.99 cr., Hindustan Oil Exploration Company Ltd is engaged in oil and gas exploration. The company is engaged in offering hydrocarbons and other incidental services. Here’s a brief on its financials and performance.
- The smallcap stock is 4.41x as volatile as Nifty.
- As per the Tickertape Scorecard, the stock shows high signs of profitability and efficiency, with a score of 8.8 out of 10. There are no red flags found in the stock.
- The stock is underpriced and not in the overbought zone. However, the stock is behind its peers in the performance, valuation, and growth score.
- Over the last 5 yrs, the stock has been ahead of its industry average regarding revenue growth, net income, debt-to-equity ratio, and current ratio.
Indian oil and gas industry
India is the third-largest energy and oil consumer in the world. The Indian oil and gas sector is among the eight core industries present in the country. As of April 2022, India’s oil refining capacity stood at 251.2 million metric tonnes (MMT) per annum, making it the second-largest refiner in Asia. India is also the 4th largest importer of LNG.
The current consumption of petrol products in the country stood at 222.3 MMT in FY 2023. Among all petroleum products, High-Speed Diesel was the most consumed oil product in India and accounted for 38.6% of petroleum product consumption in FY 2023.
India’s LNG import stood at 20.1 MMT in FY 2023. The gross production of LNG was 2,883 Million Metric Standard Cubic Metres (MMSCM) in January 2023.
In the Union Budget 2023-2024, Rs. 35,000 cr. is allotted for priority capital investments towards energy transition and net zero objectives and energy security, and Rs. 10,000 cr. for compressed bio-gas plants and 300 community and cluster-based biogas plants. Now, let’s have a quick look at the industry’s projections.
India’s oil demand is expected to increase by 40% to 6.7 Million Barrels (MB) per day by 2030 and further to 8.3 MB/day in 2050 from 4.7 MB/day in 2021. Further, India’s gas demand is expected to almost double to reach 115 Billion Cubic Metres (BCM) by 2030 and 170 BCM by 2050.
How do you find the best oil and gas stocks for your portfolio?
The industry looks promising when we look at the projections. But is that the only reason to invest in oil and gas stocks? Well, no! Before investing, you must consider your portfolio goals, risk appetite, investment budget, and portfolio diversification, and check if fundamental factors back the stock. For the latter, #TickertapeHaiNa!
Tickertape provides you with comprehensive research, analysis, and investing tools. With Tickertape Stock Screener, you can list stocks based on your preferred criteria. There are over 200 filters for you to choose from, along with pre-built screens, which make your analysis faster.
Further, the Scorecard on every asset page helps you dive deeper into the stock and analyse the stock based on quantitative factors such as profitability, performance, entry and exit points, valuation, and growth and provides a sneak peek into the potential red flags in the stock. Moreover, you can check the red flags of your portfolio by connecting it to Tickertape. Along with it, you can see how diversified your portfolio is, monitor your smallcase portfolio, understand how your portfolio is valued along with its volatility, see how your portfolio is expected to perform in the next year, and so much more. Read all about it here, and connect your portfolio right away.
Research, analyse, and invest quicker than before, because #TickertapeHaiNa! Become a Pro Member now!
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
- Best Tobacco Stocks To Invest In India (2024) - May 17, 2024
- Best Stocks for Swing Trading in India (2024) - May 17, 2024
- Best Fundamentally Strong Penny Stocks (2024) - May 17, 2024
