Owing to an onslaught of IPOs, growing Foreign Institutional Investments (FIIs), and India’s resilience in the face of turbulent conditions, the Indian stock market is thriving. Thus, investing strategically for the long-term in the current scenario is a lucrative option for investors.
Oil and gas stocks are doing well and can be a profitable investment for the following reasons:
- Energy companies form the backbone of every economy and have high-growth potential.
- India is the world’s third-largest energy producer and consumer, and its energy portfolio is ever-diversifying. In the wake of increased FDI inflows and electrification schemes, this sector will prove to be highly profitable for investors.
In this article, we will talk about the top 5 oil and gas stocks to look out for.
1. Hindustan Petroleum Corporation Ltd. (HPCL)
HPCL is an oil and gas refinement company based out of Mumbai. It is a Fortune 500 company and remains a top pick for investors because of its strong financials, low P/E ratio, robust management, high dividends, and well-performing subsidiaries.
After ONGC acquired the company, they expanded their capacity and looked forward to sharply increasing earnings. At the moment, HPCL share price amounts to ₹242.8 in NSE and ₹243.8 in BSE.
2. Indian Oil Corporation Ltd. (IOCL)
Indian Oil Corporation is a reputable public sector enterprise in the field of oil exploration and production. They are considered to be one of the best energy sector stocks in India and conduct operations in the petroleum and petrochemicals segment.
Their stable track record and sophisticated asset management have secured them the 3rd rank on the list of Oil companies in the country. Currently, Indian Oil share price is ₹71 and is expected to grow in the long term.
3. Reliance Industries
Reliance Industries is a leader in the oil, gas, retail, digital and financial services segments. Their Oil to Gas portfolio includes aviation fuel, refining, exploration, production, petrochemicals, and fuel retail.
Sound financial planning and competent management make these stocks one of the most sought-after investments. Their current share price is ₹2588.35.
4. Oil and Natural Gas Corporation Ltd. (ONGC)
ONGC is an Indian company involved in the exploration, development, refining, and production of oil and gas products.
They are India’s top oil and gas producer and put continuous effort into exploration and research.
Their current stock price is ₹133.20.
5. GAIL (India) Ltd.
GAIL (India) Ltd. is India’s top natural gas processing, production and distribution company. Their diverse portfolio includes natural gas and LPG transmission, marketing and petrochemicals.
They enjoy a strong brand name and consumer recognition, along with sustainable growth as a result of their diverse operations. The current share price of GAIL is ₹91.75.
With this, we conclude our list of the top oil and gas stocks you should invest in in 2022.
It is recommended to do in-depth research about the share market before investing as it involves a lot of risks. Once you are ready to invest, start your journey by opening a demat account with Angel One.