The oil and gas sector is a cornerstone of the Indian economy, significantly contributing to its energy needs and overall growth. Oil demand in India is expected to grow by 2X to reach 11 million barrels per day by 2045. The landscape of the sector is shaped by factors such as global crude oil prices, government policies, and emerging technologies in renewable energy. In this article, check the best oil and gas stocks in India in October 2024, based on 5-yr CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Oil India Ltd | 93,163.96 | 14.71 | 42.66 | 172.58 |
| Chennai Petroleum Corporation Ltd | 14,045.32 | 5.12 | 41.10 | 90.13 |
| Great Eastern Shipping Company Ltd | 17,609.62 | 6.74 | 34.35 | 50.11 |
| Aegis Logistics Ltd | 25,431.71 | 44.68 | 33.03 | 111.98 |
| Mangalore Refinery and Petrochemicals Ltd | 31,439.87 | 8.74 | 28.67 | 89.32 |
| Reliance Industries Ltd | 1,876,309.14 | 26.95 | 18.63 | 21.60 |
| Oil and Natural Gas Corporation Ltd | 3,71,432.74 | 7.55 | 18.32 | 61.50 |
| Hindustan Petroleum Corp Ltd | 86,581.10 | 5.41 | 13.75 | 132.57 |
| Indian Oil Corporation Ltd | 2,38,154.69 | 5.71 | 10.62 | 86.09 |
| Bharat Petroleum Corporation Ltd | 1,47,617.65 | 5.50 | 6.62 | 98.82 |
Note: The list of oil and gas stocks provided here is as of October 9, 2024. The stocks are selected from the Nifty 500 universe and are sorted based on the 5-yr CAGR.
Oil India Limited (OIL) is a fully integrated Exploration & Production (E&P) company. It is a Maharatna company, under the administrative control of the Ministry of Petroleum and Natural Gas and is the 2nd largest national oil and gas company in India. In FY 2024, the company’s total income was ₹37,646.48 crore, which dropped from ₹41,758.29 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹6,980.45 crore, compared to ₹9,854.39 crore in the FY 2023.
Key metrics:
Chennai Petroleum Corporation Limited is engaged in refining crude oil to produce and supply various petroleum products and manufacture and sell lubricating oil additives. In FY 2024, the company’s total income was ₹79,283.01 crore, compared to ₹90,915.49 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹2,745.07 crore, compared to ₹3,531.53 crore in FY 2023.
Key metrics:
Great Eastern Shipping Company Ltd, along with its subsidiaries, is a major player in the shipping and oil drilling services industry in India. In FY 2024, the company’s revenue was ₹5,919 crore, compared to ₹6,171 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹2,614 crore, compared to ₹2,575 crore in FY 2023.
Key metrics:
Aegis Logistics Ltd is a leading integrated Oil, Gas, and chemical Logistics company in India and one of the top importers and handlers of LPG among private players in India. In FY 2024, the company’s total income was ₹7,23,551 lakh, compared to ₹8,81,420 lakh in financial year 2023. The profit for the year ended March 31, 2024, was ₹67,221 lakh, which rose from ₹57,070 lakh FY 2023.
Key metrics:
Mangalore Refinery and Petrochemicals Limited (MRPL) is a Category 1 schedule ‘A’ Miniratna company. It is a Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum and Natural Gas. In FY 2024, the company’s total income was ₹1,05,414.86 crore, compared to ₹1,24,926.00 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹3,597.05 crore, compared to ₹2,655.40 crore in FY 2023.
Key metrics:
The oil and gas sector is one of the 8 core industries in India, significantly influencing decision-making across various sectors of the economy. India’s economic growth is closely tied to its energy demands, with projections indicating a continued rise in the need for oil and gas, making the sector highly attractive for investment. As of 2023, India remains the world’s 3rd largest oil consumer.
To meet this growing demand, the government has implemented several policies, including allowing 100% foreign direct investment (FDI) in various segments, such as natural gas, petroleum products, and refineries.
Over the past decade, India’s refining capacity has expanded from 215.1 million metric tons per annum (MMTPA) to 256.8 MMTPA, with expectations to reach 309.5 MMTPA by 2028. Minister of Petroleum & Natural Gas Mr Hardeep Singh Puri stated that the Exploration and Production sector presents investment opportunities worth US$ 100 billion by 2030.
In the budget for 2024-25, ₹497.25 crore (~US$ 59.75 million) has been allocated to develop pipeline infrastructure for the injection of Compressed Biogas (CBG) into the City Gas Distribution (CGD) network. Additionally, in February 2024, Prime Minister Narendra Modi announced a strategic investment plan of US$ 67 billion for the Indian gas sector over the next 5-6 years.
Apart from these oil and gas sector stocks, there are other companies as well in the sector. Before investing in any company, thoroughly research the business, financials, future prospects and more. Conduct a detailed assessment to understand potential risks and returns. Make informed decisions based on your financial goals and risk appetite.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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