An overview of the Indian oil sector
The recent crude oil price rise has put pressure on the oil price in the Indian market, with the price of petrol in the local market crossing ₹100 mark per litre. As for any growing economy, the oil demand is expected to grow rapidly in India and double by 2045. India is the world’s third-largest oil and energy consumer and one of the fastest-growing energy markets. And so, the government is trying to focus more on strengthening the current infrastructure and reserve capacity to continue boosting the economy.
The Indian oil sector stocks have generated safe and stable income for investors, which makes them attractive for long-term investment.
From an economic point of view, the oil industry is a driving force in the economy, and oil companies make significant contributions to the country’s GDP. It is anticipated that India will lead the worldwide expansion in non-OECD petroleum consumption.
There is currently a demand and supply gap for refined petroleum products. The Indian government has announced plans to encourage the refinery companies to improve their capacities to close the demand and supply difference.
Top oil companies in India
Once we have understood the scope of investment in the oil and refinery sector, let’s look at the top oil companies in India by market capitalisation.
|Company Name||Market Capitalisation (in ₹ Cr)|
|Deep Energy Resources||465.00|
Reliance operates in the oil-to-chemical, oil-to-gas, digital, and financial services segments. The oil-to-chemical segment includes oil refineries, petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel, bulk wholesale marketing, and others. Their oil and gas segment involves the exploration and production of crude oil and natural gas. In 2022, the company recorded a profit of Rs 60,705 crore against a revenue of Rs 7,21,634 crore for the same period.
Market capitalisation: ₹1,730,043.64cr
P/E (TTM): 26.40
EPS (TTM): 98.38
Profit in 2022: ₹60,705 cr
ONGC engages in the exploration, development, and production of crude oil, natural gas, and value-added products in onshore and offshore locations. ONGC is a central public sector undertaking, and it has Mangalore Refinery and Petrochemicals Ltd, ONGC Videsh Ltd. and Petronet MHB Ltd as its subsidiaries.
Market capitalisation: ₹1,78,326 cr
P/E (TTM): 3.46
EPS (TTM): 40.92
Profit in 2022: ₹45,522 cr
Petronet LNG is an India-based, regasified, liquified natural gas company (RLNG). The company’s primary operation includes the import and processing of LNG. The company’s LNG receiving and regasified terminal in Dahej has a nameplate capacity of five million metric tons annually. Quick details on the stock are as follows.
Market capitalisation: ₹31,838 cr
P/E (TTM): 9.20
EPS (TTM): 23.07
Profit in 2022: ₹3,438 cr
Indian-based OilIndian Limited is involved in the integrated exploration and production of crude oil and natural gas. The company’s business verticals include crude oil, natural gas, LPG, pipeline transportation, renewable energy and others. However, the last 12-month performance of the company’s stock shows a price decline.
Market capitalisation: ₹22,154 cr
P/E (TTM): 2.73
EPS (TTM): 74.85
Profit in 2022: ₹5,622 cr
Founded in 1983, Hindustan Oil Exploration Company Limited is an India-based exploration, production, and development company of crude oil and natural gas. It has 10 oil and gas blocks of discovered resources in its capacity. Hindage Oilfield Services Ltd., Geopetrol InternationalLtd., Geopetrol Mauritius Ltd., and GeoEnpro Petroleum Ltd. are the subsidiaries of HOEC. In one year, the company’s stock price dropped by 35.20 percent.
Market capitalisation: ₹1,873 cr
P/E (TTM): 44.49
EPS (TTM): 3.18
Profit in 2022: ₹19.99 cr
Jindal Drilling and Infrastructure services companies are involved in the exploration of crude oil and natural gas. Although not an oil company directly, Jindal drilling fits perfectly into our discussion of Indian oil market companies since it offers infrastructural and drilling services. The company’s primary role involves various offshore rigs, like drilling barges, jack-up rigs, submersible rigs, and drill ships.
Market capitalisation: ₹890 cr
P/E (TTM): 7.70
EPS (TTM): 39.84
Profit in 2022: ₹64.47cr
Deep Industries is one of the leading solution providers for the energy sector. Deep Industries offers specialised air & gas compression services, drilling and workover services, gas dehydration services, and integrated project management services to its clients.
Market capitalisation: ₹825.76 cr
P/E (TTM): 6.36
EPS (TTM): 5.37
Profit in 2022: ₹69.34cr
Deep Energy Resources
Deep Energy Resources is engaged in the conventional and unconventional exploration and production of oil and gas resources. It provides gas compression, gas dehydration, workover, and drilling services. In the last 12 months, the company stocks have gained 99.40 percent.
Market capitalisation: ₹465 cr
P/E (TTM): 6.36
EPS (TTM): 22.87
Profit in 2022: ₹72.13cr
Selan Exploration Technology Ltd
The company explores and produces oil and gas in several oilfields in Gujarat state, a total area of 190 sq km. In the last 12 months, the small-cap company’s share price has jumped 161.40 percent. The company recorded a profit of Rs 9.92 crore in 2022.
Market capitalisation: ₹448 cr
P/E (TTM): 18.868
EPS (TTM): 15.79
Profit in 2022: ₹9.92 cr
Aban Offshore provides offshore drilling services to companies engaged in oil and gas exploration in domestic and international markets. The company’s stock has lost 11 percent in the last 12 months.
Market capitalisation: ₹276 cr
P/E (TTM): NA
EPS (TTM): – 414.75
Profit in 2022: – ₹2,177 cr
These are the top ten oil companies in India by market capitalisation. If you want to invest in any of these stocks, open demat account in a few minutes with Angel One.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.