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Best Gas Stocks to Buy – Compare Top 10 Petrol Shares to Buy in India

Last Updated Date - Mar 21, 2023

A vastly populated and growing economy like India has high energy requirements. India alone consumes 35% of the global supply of energy.

The Oil and Gas sector has a huge role in meeting India’s energy requirements, whether industrial, retail, or consumer.

The Indian stock exchanges list many gas companies in India. The Make in India program of the Government aims to give a significant push to industries.

Furthermore, rising consumerism is also instigating retail segments and individual demands. This will boost the oil and gas sector to meet all these segments’ energy needs.

Accordingly, we have shortlisted a list of the best gas stocks to buy

Know about the Oil and Gas Sector in India

The Oil and Gas sector has several large-sized top petrol companies in India. Government-owned, public-sector undertakings dominate the sector.

India is the 3rd largest consumer of oil and gas in the world. It consumes 213.13 MMT of petroleum products. It is also the largest exporter of these products in Asia. India also consumes 64.14 BCM of natural gas annually.

The Government wishes to reduce the dependency on oil imports to 10% by the end of the year. This will give a significant push to domestic oil and gas production.

This article brings you a list of the top petrol sector stocks to buy.Top 10 Oil and Gas companies in India

Top 10 Oil and Gas companies in India

Investors get a lot of options of stocks in this sector but they should always look for the Best Petroleum Stocks to Buy. This will help them earn a huge amount of return and eradicate numerous investment risks.

We have determined the list of best Gas shares in India based on market capitalization. The stocks have been listed from top-ranked downwards:

In addition to the top 10 Oil and Gas stocks, we have also incorporated 5 Oil and Gas companies in our ‘honorable mentions’ category:

The list of top petrol shares to buy primarily includes PSUs and several large-cap and mid-cap companies.

As these companies are large, the market cap has been deemed the best basis for ranking. Market capitalization is the total market price of the company’s total outstanding shares.

A simple formula is used to calculate this. Additionally, we have also listed other vital parameters of these stocks.

These include last traded price, 52-week prices, price growth over 6 months, and 1 year period. We will now elaborate on each of these ranked Oil and Gas stocks.

ONGC – Best Petroleum Stocks in India

Taking the first position in the list of best petroleum stocks in India is the Oil and Natural Gas Corporation. ONGC is a government-owned company, i.e., a Central Public Sector Enterprise.ONGC - Best Petroleum Stocks in India

1956 is the year of establishment of the company, with its registered office in Delhi. ONGC is India’s largest crude oil and natural gas manufacturing company. It has a vast market share of 70%.

Its core business is the production of crude oil and gas. ONGC operates its business through its several divisions – ONGC Videsh, ONGC Petro-additions Ltd, ONGC Tripura Power Company, and Mangalore Refinery and Petrochemical Ltd.

It has annual revenue of Rs.681,141 crores with a whopping net profit of over Rs.11,000 crores. ONGC is a large-cap company with a market cap of Rs.2,03,00.00 crores. Its share price trades at around Rs.161.

Why to invest in ONGC stocks?

  • Holding a majority market share gives it an almost monopolistic position in the market.
  • Being a government-owned company lends stability and security to investors.
  • It is making a foray into renewable energy space by setting up 3 Solar Thermal Engines, a 50MW wind farm in Gujarat, and a 100MW wind farm in Rajasthan.

Indian Oil Corporation – Best Gas Shares in India

The second position in the list of best Gas shares in India is Indian Oil Corporation Ltd. It is a Public Sector Undertaking. Indian Oil Corporation - Best Gas Shares in India

IOCL has a diversified business line, engaged in producing oil, gas, alternative energy, and various petrochemical products.

It has a huge team of more than 35,000 people and state-of-the-art and modern research and development facilities. It accounts for almost half of the country’s petroleum products.

The company has a production capacity of 80.55 metric tonnes per annum. IOCL also has 15,000 km of the pipeline network. IOC has over 32,000 petrol stations. It also has a global presence with Sri Lanka, Mauritius, and the UAE.

Its annual revenue is Rs.5,14,890 crores. Indian Oil Corporation has a market capitalization of Rs.1,10,42.80 crores. The market price of its share is around Rs.117.

Why to invest in Indian Oil Corporation stocks?

  • IOC is the highest-ranked Oil and Gas PSU in Fortune Global 500 list for 2021
  • It is a highly profitable company with a robust track record of paying high dividends.
  • The company is constantly expanding its production capabilities and equity research facilities. It currently has 2 refineries, 1 R&D facility, and several pipeline projects in the making.

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BPCL – Top Gas Sector Stocks to Buy

Bharat Petroleum Corporation Ltd is next on top Gas sector stocks to buy. BPCL is also a government-owned company. 1952 is the year of the establishment of the company.

BPCL - Top Gas Sector Stocks to Buy

Its headquarters is located in Mumbai, Maharashtra. BPCL core business is refining crude oil into petroleum products such as petrol, diesel, automotive LPG, and CNG.

Its premium line of products includes Speed and Speed 97. Also, it carries out its operations through two large refineries – one located in Mumbai and the other in Kochi.

It has 18,622 fuel stations, out of which 14,856 are automated. It also produces Bharat Gas, MAK Lubricants, provides aviation services, etc.

Its annual profit last year was over Rs.22,000 crores. BPCL has a market cap of Rs.77,68.00 crores.

Its Gas share price in the Indian stock market is around Rs.357. BPCL has good prospects, and thus its stock is a good buy for investors.

Why to invest in BPCL stocks?

  • It is India’s best performing Maharatna Public Sector Undertaking.
  • It has shown tremendous growth – growing its profits from just over Rs.2,000 crores to more than 10 times to Rs.22,000 crores in just a year.
  • BPCL distributes record dividends to its investors.

GAIL (India) Ltd. – Top Natural Gas Companies in India

GAIL Ltd is a government-owned natural gas corporation. It is amongst the top Natural gas companies in India today. Its business is natural gas processing and distributing.GAIL (India) Ltd. - Top Natural Gas Companies in India

The business verticals include natural gas, liquid hydrocarbons, LPG, Petrochemicals, and renewable energy. GAIL owns a vast natural gas pipeline network of 13,340 km.

It has a 70% market share in gas transmission and a 50% market share in gas trading.

GAIL’s revenue from gas trading is nearly Rs.43,000 crores, and gas transportation is over Rs.5,000 crores. The Company headquarters are at GAIL Bhawan in Delhi.

The company has a market capitalization of Rs. 61,74.30 crores. Its gas share price is around Rs.138.

Why to invest in Gail Ltd. stocks?

  • Its business is in the upcoming renewable energy space. This gives it a good future potential
  • The company has a monopolistic position in the natural gas space in the country
  • It has a payout ratio of nearly 50% to its investors
  • GAIL has a strong CAPEX program for expansion – investing more than Rs.6,982 crores in the last year alone.
  • GAIL Stock predictions say that the stock prices will rise in the next few months.

HPCL – Top Petrol Stocks in India

Ranked at fifth position in the top petrol stocks in India is Hindustan Petroleum Corporation Ltd. HPCL is a PSU that has Maharatna status.HPCL - Top Petrol Stocks in India

Its business divisions include refineries, petrol pumps, LPG, Lubricants, Aviation, Natural Gas, and renewable and petrochemicals. It has refineries in Mumbai and Visakhapatnam.

It also has its joint venture refineries. HPCL has 19,602 petrol pumps, 6217 LPG distributors, and 3775 pipeline networks.

The company’s marketing throughput is 16.42 MMT, and pipeline throughput is 19.1 MMT. Its annual revenue is 2,69,243 crores with a net profit of Rs. 10,664 crores.

HPCL has a market cap of Rs.41,03.10 crores. Its gas share price currently trades at Rs.290.

Why to invest in HPCL stocks?

  • It has forayed into upcoming EV space – it has 655 EV charging stations.
  • It is currently undergoing major expansion and modernization. This is in both its refineries and its pipelines and JV projects.
  • The company has strong balance sheet which attracts all types of Investors.

Petronet LNG – Top 10 Petroleum Stocks in India

Petronet LNG is the oldest amongst the top 10 petroleum stocks in India. Its business is importing LNG, storing it, regasification, and distributing LNG.Petronet LNG - Top 10 Petroleum Stocks in India

It is also a government-established company. 1998 is the year of the formation of the company. Petronet LNG was set up as a JV company with an ownership stake by 4 PSUs. These 4 PSUs are BPCL, GAIL, IOCL, and ONGC.

For this purpose, it has two LNG terminals – one in Dahej and one in Kochi. The Dahej terminal’s capacity is 17.5 MMT per annum.

The Kochi terminal is smaller, with a capacity of 1.4 MMT per annum. Together, the terminals meet 40% of the country’s demand for LNG.

Petronet LNG clocks an annual revenue of Rs. Twenty-six thousand crores and a net profit of nearly Rs. 4,000 crores. Petronet LNG has a market cap of Rs.30,87.70 crores. Its gas share price trades at around Rs.205.

Why to invest in Petronet LNG stocks?

It has an expansion project underway in Qatar, which is expected to increase the supply of LNG

  • The Government of India plans to spend Rs. 7.5 trillion to expand oil and gas infrastructure over the next 6 years. This is expected to boost the growth of this company.
  • The Government’s New LNG policy to strengthen this sector.
  • Petronet LNG Share Forecast suggests that it has very good future potential.

Indraprastha Gas – Best Gas Stocks to Buy

The following list of best gas stocks to buy is Indraprastha Gas. As the name suggests, Indraprastha Gas is a natural gas distribution company.Indraprastha Gas - Best Gas Stocks to Buy

The company was set up as a joint venture between the central Government and 2 of its PSUs, namely GAIL and BPCL. 1998 is its year of establishment.

The company supplies natural gas as vehicular fuel and for cooking purposes. The Company clocks in annual revenue of more than Rs. Four thousand crores, with a net profit of Rs. 606 crores.

Indraprastha Gas today has a market cap of Rs.25,45.50 crores. Its gas shares in India trade around Rs.361. Investors can benefit from buying stocks of Indraprastha.

Why to invest in Indraprastha Gas stocks?

  • There is a significant government push to adopt alternative fuels such as CNG. This will boost demand for the company’s product.
  • CNG vehicles are becoming more popular day by day. Existing cars, especially commercial vehicles, are opting for CNG conversion.
  • The company has recovered quickly from the pandemic, reporting higher volumes than pre-covid days. This indicates the fundamental analysis of the company.

Linde India – Top Gas Companies in India

The next on the list of top Gas companies in India is Linde India Limited. It is one of the oldest oil and gas companies in India. 1935 is the year of the formation of the company.Linde India - Top Gas Companies in India

Its core business is manufacturing and supplying industrial and medical gases. It also constructs cryogenic and non-cryogenic air separation plants.

Its sites are spread across India, including Kolkata, Rourkela, Jaipur, Hyderabad, Mumbai, etc. The company’s annual revenue is around Rs.2000 crores.

Linde India boasts of a market cap of Rs. 24,48.70 crores. Its share price is relatively high, trading at around Rs.2840.

Why to invest in Linde India stocks?

  • It manufactures one of the most crucial medical gases, Oxygen. This puts the company in a pivotal position
  • It has a consistent and healthy track record of dividend declaration.
  • The company proved its might in times of crisis by showing record financial performances in 2020.
  • According to Linde India Stock Prediction, it is expected to provide decent returns.

Gujarat State Petronet – Best Gas Companies in India

Ranking at no.9 in the list of best gas companies in India is. The company is a state-government-owned enterprise. It has the unique distinction of being the only state-government-owned oil and gas company.Gujarat State Petronet - Best Gas Companies in India

1998 is the year of establishment of the company. It is a natural gas transmission company. Its operations take place through a 2239 km natural gas pipeline in Gujarat.

Its annual revenue is Rs.2149 crores with a net profit of Rs. 1200 crores. Gujarat State Petronet has a market cap of Rs.16,41.50 crores. Its share price is reasonably priced, trading at around Rs.290.

Why to invest in Gujarat State Petronet stocks?

  • GSP is India’s second-largest natural gas infrastructure transmission company
  • It focuses on clean and green energy, which is very important today.
  • The company has several pending applications to expand its pipeline coverage in Gujarat and connect to other states.
  • Gujarat’s plan to make the state an automotive manufacturing hub will boost the demand for the company’s products and long term investment.

Gujarat Gas Co – Top 10 Natural Gas Shares to Buy

Completing the list of top 10 Natural gas shares to buy is Gujarat Gas Limited. The state of Gujarat also promotes this company. It is part of the same group of companies that Gujarat State Petronet belongs to.Gujarat Gas Co - Top 10 Natural Gas Shares to Buy

Gujarat Gas is the largest gas distribution company in India. It is almost an extension of Gujarat State Petronet. This is because the company’s pipeline network starts where GSPL ends.

It supplies natural gas to customers in retail, commercial and industrial segments. It has 30,700 km of gas pipeline network and 564 CNG stations.

Its annual revenue exceeds Rs.10,000 crores, and its net profit exceeds 1200 crores. The company has a market cap of Rs.956.20 crores. Its share trades at around Rs.745.

Why to invest in Gujarat Gas Co. stocks?

The reasons that make it amongst the top gas shares to buy are:

  • It has maintained a consistently high credit rating of AA+.
  • It has a vast reach, with 15.7 lac PNG domestic connections, 13,200+ commercial connections, and 4000+ industrial connections.
  • Gujarat Gas has quickly pivoted to the digital world and enhanced its customer reach and satisfaction.
  • Gujarat Gas Share Forecast suggests that it has very good future potential.

Confidence Petroleum – Petroleum Sector Stocks to Buy

The first company to make it to the honorable mentions list of Petroleum sector stocks to buy is Confidence Petroleum Ltd.

This company has diversified business interests in oil and gas. It undertakes cylinder manufacturing, provides packed LPG cylinders, and does LPG bottling.

The company has 58 bottling plants, 209 LPG dispensing stations, and a network of 1400+ dealers and distributors.

It operates under the brand Go Gas. The company has an annual revenue of around Rs. 800 crores. It is present in 22 states of India. It has a market cap of Rs. 199.40 crores. Its share price is relatively low, trading at around Rs.70.

Refex Industries – Gas Companies Buying Stocks

Refex Industries Limited is next in our honorable mentions category of Gas Companies buying stocks. 2002 is its year of establishment.

Its business is in the refrigerator space – refilling and marketing non-ozone depleting refrigerant gases, namely HydrofluoroCarbons.

Its products are used in various types of air conditioners and refrigerators. Refex Industries annual revenue is more than Rs.600 crores.

Refex industries have a market cap of Rs.26.70 crores, and their share price is around Rs. 127. Its focus on environment-friendly products gives it a good potential for growth.

Ellenbarrie Industrial Gas – Gas Companies’ Shares to Buy

Next in the list of honorable mentions of Gas companies’ shares to buy is Ellenbarrie Industrial Gases Ltd.

Its main business involves manufacturing and supplying industrial gases. It has been in the business for more than 5 decades. Ellenbarie has a market cap of Rs.20.30 crores. Its share price is low, around Rs.3.

As the company’s primary customers are factories and industries, the Government’s ‘Make in India’ program will boost the company’s products.

Guj NRE Coke – Best Petrol Companies in India

Guj NRE Coke also features in the list of best Petrol companies in India. 1986 was the year of the establishment of the company.

It manufactures and sells low-ash metallurgical coke. Its primary clientele is from the steel industry, mainly soda ash plants, zinc smelters, and foundries.

The company has a market cap of Rs.14.90 crores. Its share price is meager, around Rs.0.93. It is India’s largest supplier of met coke, giving it a semi-monopolistic position in the business.

National Oxygen – Gas Stocks in India

National Oxygen Ltd is the last to feature on our list of Gas stocks in India. It is one of the older companies, formed in 1974.

It manufactures and provides industrial gases in both liquid and gaseous forms. National Oxygen has a long legacy in the business of more than 3 decades.

It has a sales turnover of nearly Rs. 40 crores.  Its market capitalization is Rs.4.10 crores, and its share price trades around Rs.83.

How to find Gas stocks for trading?

Now that you have all information on the top Oil and Gas stocks, you can trade in the Gas stocks. A list of 15 stocks, especially most from the PSU segment, may be too many for a single investor for investment.

Thus, we will detail the criteria and factors that you should check to narrow down this list for investing:

Financial performance: Financial performance is the primary determinant of the market performance of any company. Thus, you must study the companies’ financial reports, especially to check their debt position, qualifications in the audit report, etc.

Dividend history: Most of the oil and gas stocks are PSUs. Thus, they reward investors more in dividends than in price increases. Hence a study of their dividend payout history is essential.

P/E ratio: A stock will be better if its price is reasonably valued. The P/E ratio is a good indication of that.

Relevant industry news: The Oil and Gas industry is particularly impacted by government policies, taxes, and global macroeconomic changes. Thus, being aware with these changes and developments is important.

How to invest in Gas sector stocks?

The main requirement to invest in Petroleum stocks is a Demat account and an active share trading account. This is necessary because shares can only be traded in dematerialized form.

You can approach your bank to assist you in opening a Demat account. Alternatively, you can also open it with a zero-brokerage house.

You will be provided with login credentials to access the Demat and trading account.

You can view all listed stocks and the available prices to buy and sell them by logging in. Investors can make a watchlist of all stocks they are interested in buying.

Top Gas Companies in India – Conclusion

NBFC sector is now an integral part of the financial services industry. They mainly cater to smaller customers and less organized sectors that cannot avail of regular banking loans.

In this way, the sector boosts the economy and serves the country’s masses. Growing urbanization, increasing incomes, and evolving aspirations are the key factors that will boost the growth of this sector.

Further, more favorable government policies such as Make in India and Affordable housing for all will also be beneficial.

Thus, we have summarized the top Gas companies in India for you to invest in this booming sector.

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