Best Oil and Gas Stocks in India in September 2024 – Based on 5yr CAGR

The oil and gas sector is one of India’s 8 core industries and significantly impacts decision-making across other key economic sectors. India’s economic growth is closely tied to its energy needs, leading to a forecasted increase in oil and gas demand. As of 2023, India remains the third-largest global oil consumer. Oil demand in India is expected to double, reaching 11 million barrels per day by 2045. In this article, check the best oil and gas stocks in India in September 2024, based on 5-yr CAGR. 

Best Oil and Gas Stocks in September 2024 – Based on 5yr CAGR

Note: The list of stocks in oil and gas sector provided here is as of September 9, 2024. The stocks are picked from the Nifty 500 universe and are sorted based on the 5-yr CAGR. 

Overview of the 5 Best Oil and Gas Stocks in India

1. Oil India Ltd

Oil India Limited (OIL) is a fully integrated Exploration & Production 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 revenue from operations was ₹37,646.48 crore, compared to ₹41,758.29 crore. The Profit After Tax (PAT) for the year ended March 31, 2024, was ₹6,980.45 crore, compared to ₹9,854.39 crore. 

Key metrics: 

• Return on capital employed (ROCE): 12.61%
• Return on equity (ROE): 13.41%

2. Great Eastern Shipping Company Ltd

Great Eastern Shipping Company Ltd, along with its subsidiaries, is a key 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. The profit for the year ended March 31, 2024, was ₹2,614 crore, compared to ₹2,575 crore.

Key metrics: 

• ROCE: 19.34%
• ROE: 23.06%

3. Chennai Petroleum Corporation Ltd

Chennai Petroleum Corporation Limited is involved in refining crude oil for producing and supplying various petroleum products and manufacturing and selling lubricating oil additives. In FY 2024, the company’s total income was ₹79,283.01 crore, compared to ₹90,915.49 crore. The profit for the year ended March 31, 2024, was ₹2,745.07 crore, compared to ₹3,531.53 crore.

Key metrics: 

• ROCE: 35.54%
• ROE: 33.69%

4. Aegis Logistics Ltd

Aegis Logistics Ltd is India’s leading integrated Oil, Gas, and chemical Logistics company 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. The profit for the year ended March 31, 2024, was ₹67,221 lakh, compared to ₹57,070 lakh.

Key metrics: 

• ROCE: 14.19%
• ROE: 13.38%

5. Mangalore Refinery and Petrochemicals Ltd

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. The profit for the year ended March 31, 2024, was ₹3,597.05 crore, compared to ₹2,655.40 crore.

Key metrics: 

• ROCE: 28.80%
• ROE: 31.08%

Oil and Gas Sector in India

The oil and gas sector is one of India’s 8 core industries, playing a crucial role in shaping decisions across other key economic sectors. Over the past decade, India’s refining capacity has grown from 215.1 million Metric Tons Per Annum (MMTPA) to 256.8 MMTPA, with projections indicating it will reach 309.5 MMTPA by 2028.

India is set to be a major driver of global non-OECD petroleum consumption growth. Petroleum product consumption has risen from 158.4 million metric tons (MMT) in FY 2013-14 to 234.3 MMT in FY 2023-24. In FY23, India consumed approximately 4.44 million barrels per day (BPD) of petroleum products, up from 4.05 million BPD in FY22. Crude oil production in India was 2.69 million barrels per day (MBPD) from April to October 2023.

India’s LNG imports totalled 30,917 million metric cubic meters (MMSCM) from April 2023 to March 2024. For the fiscal year 2024-25, the budget has allocated ₹497.25 crore (US$ 59.75 million) to develop pipeline infrastructure for injecting Compressed Biogas (CBG) into the City Gas Distribution (CGD) Network.

Conclusion 

Before investing, thoroughly research the company. Conduct a detailed assessment to understand potential risks and returns. Make informed decisions based on your financial goals and risk appetite.

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.