List of Top Oil & Gas Companies in NSE Oil & Gas Sector Stocks

It’s important to research and understand the industries and companies included in each sectoral index to make informed investment decisions. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. Oil and gas production is highly unpredictable and impacts a company’s profitability. It is also a significantly capital-intensive industry that includes test runs, drilling, heavy machinery etc. The company’s operation started in 1989, and they have been offering specialised services in offshore drilling for the last three decades.

It will also lead to a rise in the cost of generating electricity, but consumers may not feel any pinch as the share of power produced from gas is very low, analysts said. The government said the rates paid for gas produced from fields given to state-owned Oil and Natural Gas Corporation and Oil India will be $2.90 per million British thermal units for the six-month period beginning April 1. The price for gas produced from difficult fields such as deepsea has been hiked to $6.13 per mmBt, the maximum rate the Reliance Industries will charge for gas it produces from deepsea blocks such as KG-D6. Withdrawals of natural gas from U.S. underground storage facilities totaled 1,707 billion cubic feet during the 2022–23 heating season , after subtracting… The war in Ukraine, while foremost a humanitarian crisis, has shaken the European energy market more than any other event in recent… The U.S. Energy Information Administration reported on Thursday that domestic natural-gas supplies rose by 79 billion cubic feet for the week ended April 21.

Commodity Talk: Negative sentiments likely to drag natural gas prices further, says Amit Sajeja of Motilal Oswal | News

Investing in any of these companies should not be based on a cursory review; investors need to do detailed research before investing. Please note that this analysis is done with the only purpose of screening good companies. No suggestions are being made to directly go and invest in the top scoring companies of this analysis. We suggest that one should perform a qualitative analysis of top scoring companies in this analysis and take investment decisions based on risk profile.

It is an India multinational conglomerate engaged in a variety of businesses. The oil to telecom company is into energy, petrochemicals, natural gas, retail, telecommunication, mass media, and others. A fundamental score is a smallcase proprietary score between 1 and 10, which is assigned to stocks listed on NSE.

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Assess the operating cash flows generated by the liquidity costs along with the dividend payouts made by these companies. Since most companies in this sector trade at decent valuations, assess the price ratios as well as the EV/EBITDA ratios. The energy sector is one of the most crucial elements for an economy. The industry includes the Oil & Gas industry, the Coal mining industry, the Power generating industry, and the power distribution industry. Not just ceramics firms, the news is also negative for fertilisers companies, as their cost of production is set to go up.

You’ll learn about the key factors that drive the price of natural gas, and you’ll be taken—step-by-step—through several ways to trade natural gas including via stocks, options, futures and ETFs. The company has delivered a ROE of 26.7% which is higher than peers while the operating profit margin stood at 9.51%. Additionally, it reduced its debt-to-equity ratio to 0.24x which indicates a lower-than-peer debt level. The company currently trades with a P/E of 9.75x and EV/EBITDA of 5.22x indicating that the stock trades at very attractive valuations. On financials, the company has delivered an ROE of 19.6% for FY22 With the rise in oil prices witnessed in FY22, the company did see some gains pour in its favor.

This is the minimum amount which is required to buy “x” number of lots of a particular commodity to trade in futures market. “After a decent upside move, the stock may cool off up to immediate support at the 150 level but it offers accumulation opportunity. In the midterm, the stock will hold a positive view as long as it sustains above the 145 level. On the higher side, the stock can have an upside potential up to 165 followed by a 178 level. “From a price action perspective, the stock moved below the rising channel but found its feet at the support band.

Oil companies need to deal with outside influences which have a significant impact on their stock price. Geo-political situations, inflation, and supply crunch are some of the external factors that influence the stock price of oil and gas companies. TotalEnergies of France and Adani Green Energy Ltd have formed a partnership to create the world’s largest green hydrogen ecosystem.

IOCL and GAIL are engaged in the storage and distribution of crude oil. Crude Oil is the primary component for the energy industry and is the most important commodity in the world. Oil & Gas basically includes products drawn out from crude oil which is extracted by oil drills. Crude oil is further refined to produce products such as petrol, diesel, ATF , kerosene, heating oil, LPG and CNG among others. On Saturday, IGL reduced prices of natural gas supplied to automobiles by around Rs 6 per kg and piped to households as kitchen fuel by Rs 5 per unit.

Investors should assess the operating cash flows generated by a company which provide a more consistent idea vs the net profit as these companies are subject to large non-cash items such as depreciation which can affect profits. Investors need to assess the debt levels of the companies, especially for discoms. This is because discoms have to first pay to buy power, either by entering a PPA or buying it from the power exchange, and then get paid for power used by consumers. The period between paying and receiving money has to be supported using debt, therefore, discoms usually run high levels of debt. The government is not only taking initiatives to increase overall renewable capacity but also its share in the overall power capacity in India. Of the renewables, Soalr is the largest power generator at 41.08 GW followed by wind power at 39.44 GW as of 2021.

When it comes to CNG vehicles, electric vehicles are expected to be its closest competitors in the coming years. The prospects of the company get even better when we take a look at its ROE and ROCE which stand at 25.6% and 30.4% respectively. During this period the company has also been able to successfully reduce its revenue and currently has minimal debt with a debt-equity ratio of 0.11. Similarly, its profits increased from Rs. 393 cr to Rs. 597 cr from 2017 to 2022 before falling to Rs. 619 cr in 2021. If we take a look at the company’s revenues and profits we observe that MGL has maintained an impressive increasing trend from 2017 to 2022. The company currently operates a network with a natural gas pipeline length of 11,884 kms.

Gujarat Gas

Green hydrogen is mainly used in the chemical industry for the manufacturing of ammonia and fertilisers. It is also used in the petrochemical industry for the production of petroleum products. Jindal Stainless also aims to become India’s first stainless steel company to install a green hydrogen plant. Furthermore, BPCL is setting up a 20-megawatt green hydrogen unit in Madhya Pradesh, the largest in India so far. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned.

When we identify the best energy stocks to buy in India, it must be remembered that these stocks are still quite heavily regulated. While technically, the oil marketing companies have full freedom in pricing, in practice, the government never allows oil prices to go through the roof. Here is a quick look at the ideal mix of energy stocks to buy in the Indian context. After the government passed on several key recommendations of Kirit Parikh’s committee, major oil and gas companies have started to trim their natural gas such as CNG and PNG prices.

If we take a look at the company’s revenues and profits we observe that IGL has maintained an impressive increasing trend from 2017 to 2020. However, its profits fell in 2021, a trend seen across industries due to covid-19. The company was able to achieve this thanks to the support from GAIL Ltd. and Bharat Petroleum Corporation Ltd. .

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Other promising companies in the oil and natural gas sector include Jindal Drilling & Industries, Petronet LNG, Asian Energy Services, and Bharat Petroleum Corporation Limited. To diversify your portfolio for the long run, a range of oil and natural gas stocks is a must for your financial health. This is not to say that investors who invest in oil and natural gas stocks do badly with their investments.

• 15% hydrogen will be added to natural gas as part of the procedure.
• Companies in this segment are usually characterized with high investment capital, extended duration as it takes time to locate, drill and be technologically intensive.
• This was given in recognition of the company’s strict safety protocols in this high-tech industry.
• It has also successfully become net debt free which is positive as peers are usually more debt laden at the given scale.
• Jindal Group that specializes in offshore drilling, is one of the top Indian private sector companies in this industry.
• It is an India multinational conglomerate engaged in a variety of businesses.

Hydrogen blended Natural Gas is being supplied to one of GAIL’s Joint Venture companies and has been successful in blending up to 2% hydrogen in natural gas in the CGD network. These initiatives reflect GAIL’s commitment to support a gas-based economy and contribute to India’s vision of a greener, cleaner, carbon-neutral and self-reliant future. The company is currently constructing 2.2 GW of greenfield renewable energy capacity, with the commissioning of the first phase of 27 MW beginning in Q3 FY 2023. JSW Energy Ltd has plans to expand its installed capacity to 10 GW by FY 2025 and 20 GW by FY 2030. Additionally, a power purchase agreement has been signed for the entire capacity of a 733 MW wind group captive with JSW Steel.

IOCL is one of the prominent downstream oil companies in India with a strong franchise of oil refining and oil retailing and distribution. IOCL is a public sector undertaking and has been attractive for its dominance of the refining business as well as its attractive dividend yield. IOCL operates in the areas of petroleum products, petrochemicals and Other Business Activities. It has a small business of oil and gas exploration activities, explosives and cryogenics, apart from alternate energy sources. The business expanse of IOCL straddles the hydrocarbon value-chain including refining, pipeline transportation and marketing. IOCL is also into production of crude oil and gas, petrochemicals, gas marketing and alternative energy sources.

Oil exploration and production are both activities carried out by the Hindustan Oil Exploration Company Limited. The Company owns a participating interest in nine oil and gas fields in India’s Cambay, Cauvery, Assam Arakan, and Rajasthan basins that are at various stages of exploration, development, and production. This growth despite muted sales growth is mainly because of the higher operating efficiencies which is evident from healthy operating profit margins. The Nifty oil & gas index is a collection of stocks and not a security that is traded on any stock exchange. To filter the best quality stocks from the Nifty oil & gas index, check out Equitymaster’s Indian stock screener.

PLF is the ratio of power generated/max capacity, a higher PLF ratio can be indicative of future capex the company may take up, since setting up capacities is highly capital intensive. Companies in this segment are characterized by shipping, trucking, pipelines, and storing of the raw materials. The midstream segment is also marked by high regulation, particularly on pipeline transmission, and low capital risk.

You can now get the latest updates in the https://1investing.in/ market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favorite stocks. The company’s net value is Rs.98,283.82 crores, and it is continually expanding. Indian Oil Corporation Ltd. has declared an equity dividend of Rs 12.00 per share in the last 12 months. ICICI Direct in its daily commodities outlook had expected natural gas futures to trade on a weaker note amid expectation of build-up of inventories as production is expected to rise in 2023.

However, Reliance continues to be a very significant player in the energy space in India. While oil extraction is still quite small, RIL is substantially into gas generation, oil refining, downstream products and retailing through its BP joint venture. Oil & Natural Gas Corporation Ltd , part of the oil & gas industry has fallen by about 20% from its March 2022 highs but a recent trendline breakout seen on the daily charts suggests that bulls are trying to take control. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article.

It is often said in the stock market that if we observe lifestyles and trends around us we might get a hold of future multi-baggers. One such multi-bagger could be the reason yummy foods are being cooked in our kitchens. In this article, we take a look at the top gas distribution stocks in India. The reduction in CNG and PNG prices comes after the government passed several key recommendations made by the Kirit Parikh Committee with respect to the pricing of natural gas produced from APM fields. The revision in domestic natural gas prices has come into effect from April 8th. Majority of the company’s price revision in CNG and PNG has come into force from April 9th.

The Ministry of Petroleum and Natural Gas is in charge of the operations of Bharat Petroleum Corporation Limited , the second-largest government-owned downstream oil producer in India. On the 2020 Fortune list of the largest public sector organizations in the world, it came in at position 309, and on Forbes’ 2021 “Global 2000” list, it came in at position 792. In order to attract foreign investment, the Indian government has recently updated the regulatory regime in the upstream sector , which is also consistent with the government’s goal to make doing business in India easier. The Oil and Natural Gas sector promises to have a dynamic landscape with room for business entity growth while the Government of India works to address teething problems. Before investing in any of these companies, investors should conduct a detailed analysis of the sector. However, please note that this is the overall quantitative analysis of the sector based on few valuation and financial parameters.

Sign Up NowGet this delivered to your inbox, and more info about our products and services. More than 6 mn tonnes of hydrogen is used by India every year to produce ammonia and methanol for industrial purposes. It is assumed that India’s demand for hydrogen will increase five-fold, and consumption of hydrogen is expected to surge by 28 mn tonnes by 2050. These stocks are filtered using Tickertape Stock Screener on 27th February 2023. The PE of the stock is 4.11 based on TTM earnings ending September 22. Please ensure you carefully read the risk Disclosure Document as prescribed by SEBI.