Natural gas is a key energy source, playing a crucial role in industries like power, transportation, and manufacturing. For investors, natural gas stocks in India present an opportunity to diversify their portfolio and tap into the growing energy market. This article explores some of the leading natural gas stocks, highlights cheap natural gas stocks worth considering, and provides tips on how to invest in share market effectively.
Why Invest in Natural Gas Stocks?
India is pushing for a cleaner energy mix, with natural gas playing a significant role. As the demand for natural gas grows, companies in this sector are poised for growth, and this sector can be seen as a good investment option.
If you’re new to the stock market, seeking financial advisory services can help you understand market dynamics and identify investment opportunities.
Here is a list of Natural Gas Stocks in India
- Reliance Industries Limited
- Bharat Petroleum Corporation Limited
- Oil & Natural Gas Corporation
- Gail India LimitedI
- Indian Oil Corporation Ltd.
- Hindustan Petroleum Corporation Limited
- Oil India Limited
- Petronet LNG Limited
- Adani Total Gas Limited
- Indraprastha Gas Limited
Source: NSE
Reliance Industries Limited
Reliance Industries Limited (RIL) is a Fortune 500 company and India’s largest private sector company by market capitalization. It has diverse interests, including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. It is also a major player in the retail sector with its Reliance Retail chain.
| Market Cap (in crore as of 19-11-24) | CMP (as of 19-11-24) | PE Ratio | Debt / Eq | ROCE (%) | 3 Yrs Return % |
| Rs. 16,79,906 | Rs. 1,241 | 24.7 | 0.44 | 9.61 | 4 |
Source: Screener.in
In the quarter ending September 2024, the company reported revenue of ₹231,535 crore, a slight decrease of 0.15% compared to ₹231,886 crore in the same quarter of the previous year. The net profit for the quarter stood at ₹19,323 crore, down from ₹19,878 crore in the corresponding period last year, reflecting a modest decline of 2.9%.
Bharat Petroleum Corporation Limited
Bharat Petroleum Corporation Limited (BPCL) is a major Indian public-sector undertaking engaged in refining and marketing petroleum products. BPCL offers a range of products and services, including fuel, lubricants, LPG, and petrochemicals. It operates three refineries in Mumbai, Kochi, and Bina, contributing significantly to India’s energy security.
| Market Cap (in crore as of 19-11-24) | CMP (as of 19-11-24) | PE Ratio | Debt / Eq | ROCE (%) | 3 Yrs Return % |
| Rs. 1,23,908 | .Rs. 286 | 9.23 | 0.76 | 32.1 | 12 |
Source: Screener.in
In the September 2024 quarter, the company posted a revenue of ₹102,785 crore, marking a slight dip of 0.25% compared to ₹103,044 crore in the same quarter last year. Net profit for the period was ₹2,297 crore, a sharp 72% drop from ₹8,244 crore in the corresponding quarter of the previous year.
Oil & Natural Gas Corporation
Oil and Natural Gas Corporation (ONGC) is the largest oil and gas exploration and production company in India. It plays a vital role in India’s energy security by contributing significantly to the country’s domestic crude oil and natural gas production. ONGC operates across various stages of the hydrocarbon value chain, from exploration and production to refining and marketing.
| Market Cap (in crore as of 19-11-24) | CMP (as of 19-11-24) | PE Ratio | Debt / Eq | ROCE (%) | 3 Yrs Return % |
| Rs. 3,11,679 | .Rs. 248 | 7.48 | 0.54 | 18.4 | 18 |
Source: Screener.in
In the quarter ending September 2024, the company reported revenue of ₹158,329 crore, reflecting a 7% increase from ₹147,614 crore in the same quarter of the previous year. However, the net profit for the quarter declined to ₹9,878 crore, a drop of 38.9% compared to ₹16,171 crore in the corresponding period last year.
Gail India Limited
GAIL (India) Limited is a leading natural gas company, involved in the entire natural gas value chain. It owns and operates a vast network of pipelines, engages in natural gas trading, and produces petrochemicals. GAIL plays a crucial role in India’s energy landscape, contributing to the country’s energy security and economic growth.
| Market Cap (in crore as of 19-11-24) | CMP (as of 19-11-24) | PE Ratio | Debt / Eq | ROCE (%) | 3 Yrs Return % |
| Rs. 1,22,731 | .Rs. 187 | 10.6 | 0.23 | 14.7 | 27 |
Source: Screenre.in
In the quarter ending September 2024, the company posted revenue of ₹33,889 crore, marking a modest growth of 2.7% compared to ₹32,986 crore in the same quarter last year. The net profit for the quarter rose to ₹2,690 crore, up from ₹2,442 crore in the corresponding period last year, showing an increase of 9.6%.
Indian Oil Corporation Limited
Indian Oil Corporation Limited (IOCL), also known as Indian Oil, is a major Indian public sector undertaking engaged in refining and marketing of petroleum products. It is the largest commercial oil company in the country, with a significant presence in exploration and production of crude oil and natural gas. IOCL operates refineries across India and has a vast network of retail outlets, providing a range of petroleum products to consumers.
| Market Cap (in crore as of 19-11-24) | CMP (as of 19-11-24) | PE Ratio | Debt / Eq | ROCE (%) | 3 Yrs Return % |
| Rs. 1,87,106 | .Rs. 132 | 11.0 | 0.90 | 21.1 | 16 |
Source: Screener.in
In the quarter ending September 2024, the company reported revenue of ₹174,976 crore, reflecting a modest decline of 2.3% from ₹179,246 crore in the same quarter last year. The company incurred a loss of ₹449 crore, a stark contrast to the significant profit of ₹13,713 crore achieved in the corresponding period a year ago.
Conclusion
Natural gas stocks in India offer a promising opportunity for investors looking to capitalize on the energy transition. Companies like Reliance, GAIL, and Petronet LNG lead the market, while smaller players like MGL offer affordable entry points.
For a successful investment journey, consider using stock screeners and seeking financial advisory services to craft a solid investment strategy. Learning how to invest in the share market is the first step towards building a diverse and profitable portfolio.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why are Natural Gas Stocks Gaining Popularity in India?
Natural gas is a cleaner and more efficient fuel compared to traditional fossil fuels. Government initiatives to promote natural gas usage and increasing demand from various sectors are driving the growth of natural gas companies, making their stocks attractive.
What are the Key Factors to Consider When Investing in Natural Gas Stocks?
Key factors to consider include the company’s proven reserves, production capacity, financial performance, debt levels, and future growth prospects. Seeking stock market advisory services can provide valuable insights into these aspects, helping investors make informed decisions.
Additionally, government policies, global energy trends, market competition, and technological advancements can significantly impact the sector’s long-term performance and stability.Are Natural Gas Stocks a Good Long-Term Investment?
Natural gas is expected to play a crucial role in India’s energy mix, especially as the country transitions towards cleaner energy sources. Long-term investments in strong natural gas companies with a solid track record and growth potential can be rewarding.
What are Some of the Top Natural Gas Stocks to Watch in India?
Some of the top natural gas stocks to consider in India include Reliance Industries, ONGC, GAIL (India), and Petronet LNG. These companies have strong market positions, significant reserves, and are well-positioned to benefit from the growing demand for natural gas
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
