Best Petroleum Stocks in India in 2024

Oil and gas companies are like the engines that power India's economy. They're also a popular choice for investors looking to grow their money over time. This article will guide you through the world of oil and gas stocks in India, helping you decide if they're a good fit for your investment goals.

 

 

What are Oil Stocks?

Imagine a company that goes from finding oil underground (exploration) to pumping it out (production), then turning it into usable products. These companies are what oil and gas stocks represent. They can be involved in just one part of this process, or all of them!

 

This gives investors a few ways to get involved:

Individual Stocks: You can buy shares in specific oil and gas companies you believe will perform well.
Oil ETFs: These are like baskets containing multiple oil company stocks. They spread your investment risk and track the overall performance of the oil sector.
Oil & Gas Portfolio: An advisor can help you create a portfolio focused on oil and gas stocks, further diversifying your risk.

 

 

Why Consider Petroleum Stocks?

Investing in top oil and gas companies can be a way to benefit from rising oil and gas prices. As the economy grows, the demand for oil and gas usually goes up too, which can drive stock prices higher.

The oil and gas industry has its ups and downs. Global events and economic conditions can cause oil prices to swing wildly. This can make oil stocks volatile, meaning their prices can change quickly and dramatically.

 

Before You Invest analyse the following:

Company Performance: Research the oil companies you're interested in. How are they doing financially? What are their future plans?
Market Trends: Understand what's happening in the overall oil market. Are there any factors that could cause prices to drop?
Your Risk Tolerance: Oil stocks can be risky. Are you comfortable with the possibility of your investment losing value?

Investing in oil and gas stocks can be a rewarding strategy, but it's crucial to understand the risks involved. By carefully evaluating companies and market conditions, you can make informed decisions about whether these stocks are the right fit for your portfolio.

 

From best stock market courses learn to predict the price movement of a stock using historical data and volume.

 

Top Petroleum stocks in India in 2024

Here is the list of best crude oil stocks in India to invest for the future: But one thing every investors need to know how to choose stocks for long term investment by analysing important ration in stock market.

 

1). Bharat Petroleum Corporation

Bharat Petroleum Corporation Limited (BPCL) is a government-owned oil and gas company under the jurisdiction of the Indian government's Ministry of Petroleum and Natural Gas, headquartered in Mumbai, Maharashtra. The company offers a range of premium products, including Speed and Speed 97. 

Its operations are facilitated by two large refineries situated in Mumbai and Kochi. With a network of 18,622 fuel stations, of which 14,856 are automated, BPCL also manufactures Bharat Gas, MAK Lubricants, and provides aviation services, among others. 

Financially, BPCL appears to be thriving, boasting a total revenue of ₹ 1,154,991.40 Crore and a gross profit of ₹ 135,857.10 Crore. This translates to an operating income of ₹ 43,687.20 Crore and a net income of ₹ 31,814.20 Crore.

 

 

2). Hindustan Petroleum Corporation

Ranked fifth among the top petroleum stocks in India is Hindustan Petroleum Corporation Ltd (HPCL). HPCL is a Public Sector Undertaking (PSU) that holds Maharatna status. The company's diverse business divisions encompass refineries, petrol pumps, LPG, lubricants, aviation, natural gas, renewable energy, and petrochemicals. It operates refineries in Mumbai and Visakhapatnam, in addition to joint venture refineries. With a widespread network, HPCL boasts 19,602 petrol pumps, 6,217 LPG distributors, and 3,775 pipeline networks.

Investing in HPCL stocks presents several compelling reasons:

•    The company has ventured into the emerging electric vehicle (EV) sector, establishing 655 EV charging stations.
  -    HPCL is currently undergoing significant expansion and modernization efforts across its refineries, pipelines, and joint venture projects.
  -    With a robust balance sheet, HPCL appeals to a wide range of investors.

 

 

3). Oil India Limited

Oil India Limited (OIL) is a prominent player in the oil and gas exploration and production sector in India. Established in 1959, OIL is a state-owned enterprise headquartered in Noida. It holds a significant position in the upstream oil and gas industry and operates under the purview of the Ministry of Petroleum and Natural Gas of the Indian government.

As the second-largest hydrocarbon exploration and production company in India, OIL boasts a workforce of 11,000 employees and a business turnover of $35 billion. The company has been accorded Navratna status and stands as one of the oldest oil companies in India. OIL plays a pivotal role in the exploration, production, and transportation of crude oil and natural gas, making substantial contributions to India's energy security. Driven by strategic initiatives and a commitment to technological advancement, OIL continues to play a vital role in meeting India's energy needs.

 

 

4). Oil & Natural Gas Corporation (ONGC)

ONGC, established in August 1956, stands as one of the largest oil companies in India. With its headquarters in New Delhi, ONGC plays a crucial role in India's energy security and hydrocarbon exploration efforts. The company provides employment opportunities to over 33,000 individuals and is engaged in the production of petroleum, natural gas, and petrochemicals.

Ranked eighth globally, ONGC boasts an impressive annual turnover of $6.50 billion. It operates across 26 sedimentary basins in India, exploiting hydrocarbon resources, and manages a network of over 11,000 kilometres of pipelines. As the largest government undertaking in the oil and natural gas sector, ONGC plays a significant role in meeting the energy needs of the nation.

 

 

5). Reliance Industries Limited

Reliance Petroleum Limited, among India's leading petroleum firms, is situated in Ahmedabad and Jamnagar. The refinery owned by Reliance Industries Limited stands as the largest in the world. Mukesh Ambani serves as the Chairman and Managing Director of the company.

Under the ownership of Mukesh Ambani, Reliance Petroleum Limited employs over 10,000 individuals and is actively involved in the production of oil, petrochemicals, and natural resources. In addition to supplying oil and various LPG products, the company conducts discussions and engages with a broad audience worldwide.

 

 

6). Castrol India Limited

Castrol India Limited operates as a manufacturer of automotive and industrial lubricants. Within the Indian lubricant market, Castrol India holds the position as the second-largest manufacturer of automotive and industrial lubricants, claiming approximately 20% of the market share. 

It functions as a subsidiary of Castrol Limited UK, which is a part of the BP Group. The company operates five manufacturing plants that are connected to a network of 270 distributors, facilitating service to over 70,000 retail outlets.

 

 

7). Gulf Oil Lubricants India Limited

Gulf Oil Lubricants Ltd is involved in the production, promotion, and trading of automotive and non-automotive lubricants. It holds a position among the top three lubricant companies in India among private enterprises. 

The company's product range encompasses automotive lubricants, industrial lubricants, specialty oils, marine lubricants, EV fluids, AdBlue, and more, catering to the automotive, industrial, and marine sectors. Gulf Oil Lubricants Ltd currently stands as the second-largest brand in India and is among the top three players in the Indian lubricant industry within the private sector. 

The brand has established partnerships with renowned motor sports and sporting organizations, including McLaren Formula 1 Racing, Manchester United Football Club, and the Chennai Super Kings (CSK) IPL Team.

 

 

Conclusion

India's oil and gas industry is like the backbone of the country. It fuels factories, powers homes, and keeps everything running smoothly. Big companies like Indian Oil, ONGC, and Bharat Petroleum are the heroes of this industry.

These companies have everything they need to succeed: giant facilities, modern technology, and a focus on protecting the environment. They're not only good at finding and processing oil and gas, but they also partner with others around the world to keep India's energy flowing and make the country a strong player on the global stage.