Tag Energy Sector

ONGC Ltd
ONGC Share Price Target 2025: PSU Stock Falls 8% as Crude Oil Prices Dip — Buy or Sell Now?

Business and Industry Overview: 

Oil and Natural Gas Corporation (ONGC) is a government-owned company. It is the biggest oil and gas company in India. It was started in the year 1956. ONGC produces around 71% of India’s oil and gas. This means most of the oil and gas used in India comes from ONGC. 

The oil that ONGC brings out from the ground is called crude oil. Crude oil cannot be used directly. It is sent to other companies like IOC, BPCL, HPCL, and MRPL. These companies change crude oil into useful things like petrol, diesel, LPG (cooking gas), kerosene, and naphtha. HPCL and MRPL are not just customers—they are also subsidiaries of ONGC, which means they are owned by ONGC. 

ONGC is a special company because it can do all the work by itself. It can find oil, drill oil, bring it out, and provide services for oil fields. It does not depend on other companies. ONGC works in very hard places like the deep seas and deserts. Still, its team of about 26,000 workers works day and night. That is why ONGC won the Best Employer award. 

ONGC also has a company called ONGC Videsh Limited (OVL). This company works outside India. It looks for oil and gas in other countries. OVL is working in 15 countries and runs 35 oil and gas projects. OVL gives about 30.3% of the oil and 23.7% of the oil and gas that India uses. This makes OVL the second-largest oil company in India, after ONGC. 

Another company owned by ONGC is MRPL – Mangalore Refinery and Petrochemicals Limited. MRPL is a big oil refinery. It can clean and process 15 million metric tons of oil every year. MRPL can handle many types of crude oil. It makes many fuel products. MRPL and ONGC also run another unit called OMPL, which makes para xylene and benzene, two important chemicals. 

ONGC also owns HPCL – Hindustan Petroleum Corporation Limited. HPCL is a very big company too. It has the second-largest oil pipeline network in India. It has more than 3,370 km of pipelines. HPCL has 14 zonal offices, 133 regional offices, and many fuel stations, LPG plants, aviation fuel stations, and shops that sell oil and gas products. HPCL has a team of over 9,500 employees working across the country. 

In the year 2022–23, ONGC earned about 77.5 billion US dollars in revenue. It is one of the most important companies in India’s energy sector. It helps the country get oil and gas and reduces the need to buy from other countries. ONGC plays a big role in India’s economy and energy security. 

Latest Stock News: 

At the start of the week, oil prices dropped sharply. This happened because Saudi Arabia cut the price of its main crude oil by the biggest amount in over two years. There is also a trade war going on, which brings fears of a global recession and weaker demand for oil. Saudi Aramco, the state oil company, reduced the price of Arab Light crude by $2.3 per barrel for buyers in Asia. This came soon after the OPEC+ group announced that it would increase oil production more than expected. In the US, leaders said that there is no danger of inflation or recession, even after putting tariffs on all imported goods. But China, the biggest oil buyer, announced tariffs in return. These trade tensions are making oil prices even more unstable. Crude oil prices have dropped fast because of these tariffs and the OPEC+ production hike. President Trump asked OPEC+ to cut oil prices. He wants to reduce inflation and put pressure on Russia to help end the Ukraine war. These global events have affected ONGC badly. As of April 7, 2025, ONGC’s share price fell over 6% and closed at ₹210.96. During the day, it even hit a 52-week low of ₹205.00. In the last 3 months, the stock has dropped by around 18.9%. When oil prices fall, it is bad for companies like ONGC and Oil India. Their profits go down because the price they get for crude oil falls. But the products made from oil (like petrol and diesel) don’t fall in price as quickly. So, refineries that bought oil earlier at high prices may face inventory losses. Meanwhile, other global oil companies are seeing mixed results. Exxon Mobil expects a $900 million profit boost because oil and gas prices were higher earlier. But Shell had to cut its gas production forecast due to bad weather and maintenance issues. This shows that the global oil market is unstable. Prices, demand, and production are all changing quickly. Investors should keep watching ONGC’s performance and compare it with the global oil and gas trends. 

Potentials: 

ONGC, which is India’s biggest oil and gas company, is now making a big shift towards clean energy. The company has decided to invest a very large amount of money — around $11.5 billion (₹1 lakh crore) — in renewable energy by the year 2030. This is 100 times more than what it is spending in the current year. The aim is to reduce pollution and produce cleaner energy for the country. Right now, ONGC has only 193 megawatts (MW) of solar and wind energy. But by 2030, it wants to build a total of 10,000 megawatts (10 gigawatts) of clean energy capacity. This includes energy from the sun (solar), wind, water (hydro), and even compressed biogas, green ammonia, and green hydrogen, which are all environment-friendly energy sources. 

To move faster, ONGC has already started work to build 1,000 MW (1 gigawatt) of solar and wind projects. The company is also planning to buy other clean energy businesses to increase its renewable power quickly. In November 2024, ONGC joined hands with NTPC, another major government company in power, to create a new joint venture (JV). This JV will combine the clean energy units of both companies and work together on big projects. The JV is also planning to buy Ayana Renewable Power, a company that owns solar and wind plants worth $2.3 billion, which will give ONGC a big push in the green energy space. 

ONGC’s Finance Director said that India needs more energy, and not just from oil and gas. That is why it makes sense for ONGC to grow in the clean energy sector. While many global oil companies are cutting down on green energy investments, ONGC is doing the opposite. It is investing more to support India’s energy needs more cleanly. This is not just good for the environment but also a smart move for ONGC’s future growth. 

Analyst Insights: 

  • Market capitalisation: ₹ 2,72,049 Cr. 
  • Current Price: ₹ 216 
  • 52-Week High/Low: ₹ 345 / 209 
  • P/E Ratio: 6.84 
  • Dividend Yield: 5.66%
  • Return on Capital Employed (ROCE): 18.4% 
  • Return on Equity (ROE): 16.3% 

ONGC is a strong company. It is very important for India’s energy needs. It gives about 71% of India’s crude oil and 72% of its natural gas. This shows it is a leader in the industry. The company is making a good profit. In Q3 FY24, it made a profit of ₹9,869 crore. This means it is working well even when oil prices change. Its Return on Equity (ROE) is 16.3% and Return on Capital Employed (ROCE) is 18.4%. This means the company uses money well and earns good profit. 

The stock is cheap when compared to others. Its Price-to-Earnings (PE) ratio is 6.84, which is lower than the industry average of 12.71. This shows the stock is undervalued. The Price-to-Book ratio is below 1, and the stock price is lower than its book value of ₹280. This gives safety to investors. ONGC also gives a high dividend yield of 5.66%, which means good extra income. The company has big reserves of ₹2,93,502 crore and no promoter pledging. It also has positive cash flows. This makes the company safe and strong. Even when oil prices fall, ONGC makes a profit and gives dividends. So, it is good for long-term investors. It is a buy. 

Oil India Ltd
Oil India Share Price Falls 6% After Surprise OPEC+ Output Hike Triggers Crude Oil Crash

Business and Industry Overview: 

Oil India Ltd (OIL) is a government company that finds, produces, and transports crude oil, natural gas, and LPG. It works under the Ministry of Petroleum and Natural Gas and has Maharatna status, making it one of India’s top public companies. Its main office is in Duliajan, Assam, with other offices in Noida, Kolkata, Guwahati, and Jodhpur. It was first found in Digboi, Assam, in 1889. The company started in 1959 as a joint venture between Burmah Oil Company and the Indian government. In 1982, the government took full control. In 1995, it became a public company. It produces crude oil, natural gas, and LPG every year. Most of the oil and gas comes from Northeast India. The company also works in Rajasthan, Andhra Pradesh, Odisha, Tamil Nadu, Mizoram, and Arunachal Pradesh. OIL has over 100,000 square kilometers of land to find more oil and gas. It also works in Libya, Gabon, Nigeria, Sudan, Venezuela, Mozambique, Yemen, Iran, Bangladesh, and the USA. 

OIL owns a pipeline from Duliajan to Barauni, Bihar to transport crude oil. It also bought Numaligarh Refinery Limited, making it a subsidiary. The company has found new oil and gas in Mozambique, Gabon, and Libya, and invested in shale oil in the USA. OIL is looking for more oil and gas in Northeast India. It has started projects in Assam, Arunachal Pradesh, and Mizoram to find oil in difficult places. The company has over 100 years of experience and is growing in India and other countries. 

With India targeting to achieve a $5 trillion economy by 2025–26, there is a huge surge in the petrochemical industry to fulfill the demand of the growing economy. Petrochemicals would fuel various industries that will contribute to the growth of the economy, such as agriculture, automotive, packaging, construction, manufacturing, and many more. Hence, this industry cannot be ignored, and the petrochemical demand is expected to reach $1 trillion by 2040. Recently, the Government of India has taken various initiatives, including 100% FDI through automatic routes, establishing Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs). It is also setting up infrastructure like 10-plus plastic parks which are to be executed between 2020 and 2035. OIL maintained an industry leadership position with a market share of 44.6% and sales volume of 85.8 MMT.  

Latest Stock News: 

On Thursday, April 4, 2025, the share price of Oil India dropped by 8.1%. It reached a low of ₹354.6. ONGC also saw a fall of 7.85%, going down to ₹224.2. This happened because global crude oil prices went down sharply. Both Brent and WTI crude oil fell by almost 7%. WTI crude dropped close to $66 per barrel. Brent crude dropped to $70 per barrel. 

The fall in prices happened because of a surprise move by OPEC+. OPEC+ is a group of oil-producing countries. They control how much oil is produced. Earlier, they said they would increase production by 1.38 million barrels per day in May 2025. But suddenly, they changed the plan. They announced a much bigger increase — 4.11 million barrels per day. This shocked the market. Experts said this was done on purpose. It was to punish member countries who were producing more oil than allowed. By increasing supply, prices were pushed down. 

At the same time, Donald Trump announced new import taxes (tariffs). There were also fears of a recession in the U.S. economy. These two things added to the market fear. Investors became worried. Crude oil prices dropped even more. 

This is bad for companies like Oil India and ONGC. They produce and sell oil. When oil prices fall, they earn less money. Their profit margins go down. They spend the same to produce oil but get paid less. That hurts their business. 

Also, they refine crude oil into products like petrol and diesel. The price of these products does not fall as fast as crude oil. Refineries may have bought oil earlier at high prices. Now they have to sell it at lower prices. This creates a loss. It is called inventory loss. 

Because of all these reasons, Oil India and ONGC are facing problems. In the past six months (from October 2024 to March 2025), Oil India’s stock fell by 38%. ONGC’s stock fell by 24%. These are big losses. It shows how falling oil prices and global issues are affecting these companies. 

Potentials: 

Oil India Limited has big plans for the future. It wants to reduce pollution and become a net-zero emissions company by 2040. To do this, it will use clean energy like natural gas, solar, and wind power. It also plans to reduce methane gas pollution by 2030 and invest in new green technology. 

The company will increase oil and gas production by tripling refining capacity and doubling gas production in the next five to six years. It will also build a gas pipeline to connect the North Brahmaputra fields. 

For the environment, Oil India plans to save more water, stop using single-use plastic, and reduce waste gas burning (flaring) by 2030. It also aims to protect forests, cut methane pollution, and lower its carbon footprint. 

Oil India is also investing in new technologies and combining them with its current work. This will help the company grow while supporting India’s clean energy goals. 

Analyst Insights: 

  • Market capitalisation: ₹ 58,192 Cr 
  • Current Price: ₹ 358 
  • 52-Week High/Low: ₹ 768 / 328 
  • P/E Ratio: 7.89 
  • Dividend Yield: 2.94%
  • Return on Capital Employed (ROCE): 17.7% 
  • Return on Equity (ROE): 18.0% 

Oil India Ltd is a strong company. Its P/E ratio is 7.89, which is lower than other companies in the same industry. This means the stock is cheap. The ROE is 18%, which shows the company uses money well to earn profit. The operating profit margin is between 30% and 42%, which means the company earns good profit from its main work. It also gives a dividend yield of 2.94% and has a payout ratio of 25.7%. This means it gives some profit to shareholders and keeps the rest to grow. In the last 5 years, sales grew by 18% per year, and in the last 3 years, profit grew by 27% per year. This shows the company is growing well. 

But, in the latest quarter, profit went down by 43% because crude oil prices dropped. Also, other income was less. This can affect the stock in the short term. The company also had negative free cash flow. This is because it spent a lot of money on new projects. But this can help the company grow in the future. Promoters hold 56.66% shares, and there is no pledge. This is a good sign. The company is also a Maharatna PSU, so it has support from the government. It is now working on clean energy projects, which is good for the future. 

So, the company is strong and growing. But because of the recent drop in profit, it is better to HOLD the stock for now. It is good for long-term investment. 

Vedanta Ltd
Vedanta Ltd: Stock Performance, Growth Plans, and Market Challenges in 2025

Business and Industry Overview:  

Vedanta Ltd. is a big company that works with natural resources. It is involved in metals, mining, oil and gas, power, semiconductors, and glass. The company has businesses in India, South Africa, Namibia, and Liberia. It makes important materials like aluminium, zinc, iron, steel, copper, lead, silver, and ferro alloys. These materials are used in buildings, machines, electronics, and transport. Vedanta also produces oil and gas, which are needed for energy. It also makes electricity for factories and businesses. 

Vedanta wants to keep costs low and work more efficiently. It uses new technology to improve its work and reduce waste. The company follows good business rules to ensure fair and honest work. It invests in better machines and smarter ways to increase profits. Even though Vedanta earns good money, it also has a lot of debt, which is a problem. 

To solve this, Vedanta is planning to split into smaller companies. This will help each business grow better. The company is also working on green energy to reduce pollution and protect nature. Since Vedanta provides important raw materials, it helps India grow and become self-reliant. Many industries need these materials to build things, make products, and produce energy. 

Latest Stock News: 

Vedanta Ltd’s stock price has gone down. On April 3, 2025, the stock fell by 4% on the BSE. In the last five days, it has dropped by 7%. This happened because Vedanta delayed its demerger plan. The company wanted to split into smaller companies by March 31, 2025. But now, it has pushed the date to September 30, 2025. The delay is because the government has not yet approved. Vedanta Limited asked its shareholders to vote on an important decision. This voting was done online through e-voting instead of a physical meeting. 

The company wanted approval to appoint Mr. Rajarangamani Gopalan as an Independent Director for two years (from February 5, 2025, to February 4, 2027). 

An expert, Mr. Upendra C. Shukla, was chosen to check and manage the voting process. The voting ended on April 2, 2025. The shareholders agreed with the decision, and the appointment was approved. The company has shared the results and the official report on its website. The results are also available at the company’s office and on the website of KFin Technologies Limited, which handled the e-voting. 

Vedanta’s stock was ₹527 per share on December 16, 2024. But now, it has fallen by 16%. On April 3, it was ₹440.9 per share. The company is worth ₹1,72,409.01 crore. Many people are buying and selling the stock. On April 3, trading was 1.38 times more than usual. On April 1, it was 1.22 times more. Vedanta wants to expand its business. It is looking for global partners. The company plans to invest $20 billion. It will spend $2 to $2.5 billion to grow Hindustan Zinc. Other metal companies like JSW Steel are also struggling. This is because of new U.S. trade rules. The U.S. may put more taxes on metal imports. This can reduce demand and hurt Vedanta’s business. 

Potentials: 

Vedanta will invest $20 billion in India over four years. It will focus on technology, electronics, and glass production. The company wants to build a semiconductor plant in Gujarat. It already has land for the project. Now, it is looking for a strong and reliable partner. Semiconductors are used in smartphones, laptops, and other electronics. Right now, India imports most of them. Vedanta wants to make India self-sufficient in this field. 

Vedanta also plans to make glass in India. Glass is used in smartphone and laptop screens. The company already makes glass in other countries. Now, it wants to set up production in India. This will reduce imports and boost India’s economy.Vedanta may sell its steel business. However, it will only sell if it gets a good price. If the price is low, it will continue running the business. The steel business is profitable and has a strong team. Vedanta has $12 billion in debt. The company says the debt is under control. It has never missed a loan payment. It believes that every big business needs large investments. Anil Agarwal, the chairman of Vedanta, wants to help Bihar grow. He says Bihar has a lot of potential. But government policies need to support businesses. Vedanta is also helping villages through Nand Ghar centers. These centers help children and women. Right now, there are 6,000 centers in India. The company will increase them to 25,000 in two years. This will help 7 crore children and 2 crore women. The centers provide food, education, and healthcare. Vedanta is thinking about investing in entertainment. But it has no fixed plan yet. The company believes entertainment should promote good cultural values. Vedanta’s plans will help India grow. It will reduce imports and create jobs. It will also support rural communities. 

Analyst Insights: 

  • Market capitalization: ₹ 1,72,013 Cr. 
  • Current Price: ₹ 440 
  • 52-Week High/Low: ₹ 527 / 302 
  • P/E Ratio: 14.5 
  • Dividend Yield: 9.90%
  • Return on Capital Employed (ROCE): 20.9%
  • Return on Equity (ROE): 10.5%

Vedanta made good profits in Q3 FY25. The company’s total sales went up by 10.06% from last year. It earned ₹34,968 crore in sales. The net profit increased by 76.20% to ₹3,471 crore. This means the company made much more money compared to last year. The EBITDA margin is 28%, which shows that the company is keeping a good part of its earnings as profit. 

It is one of the biggest metal companies in India. It controls 46% of the aluminum market. It also works in zinc, oil & gas, and power. This helps the company because it does not depend on just one business. The demand for metals is increasing in India and around the world. This is good for Vedanta. It also gives high dividends to its investors. The dividend yield is 9.90%. This means people who hold this stock get good extra income. Vedanta has very high debt of ₹87,706 crore. This is a big problem. If the company cannot manage its debt, it may face trouble. Another issue is that promoters have pledged all their shares. This means they have used all their shares to get loans. This is risky. Also, promoters’ shareholding has fallen by 13.3% in the last three years. This is not a good sign because it shows that owners are selling or losing control over the company. Vedanta is a strong company with good profits. But it has too much debt and promoter problems. Investors should not buy at a high price. It is better to wait for the price to fall before buying. Also, keep an eye on the company’s debt and what the promoters are doing. 

MRPL Ltd
MRPL Surges: Short-Term Gains Amid Market Recovery & Long-Term Growth Prospects

Business and Industry Overview: 

Mangalore Refinery and Petrochemicals Limited (MRPL) is a major oil refinery in India and is part of Oil and Natural Gas Corporation (ONGC), which is owned by the Government of India. MRPL was established in 1988 and is located in Katipalla, a suburb north of Mangalore in Karnataka. To build the refinery, five villages—Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi—had to be relocated. The refinery at MRPL is known for its flexibility. It can process crude oil from different sources with varying qualities. It has a large capacity to process 15 million metric tonnes of crude oil each year. This makes it one of the larger refineries in India. MRPL is unique because it has two hydrocrackers that produce high-quality diesel, which is known as high cetane diesel. This is important for making cleaner, more efficient fuel. Additionally, the refinery has a polypropylene unit that can produce 0.44 million metric tonnes of polypropylene each year, which is used in the production of plastics. MRPL is one of only two refineries in India that have two Continuous Catalytic Reformers (CCRs). These units produce high-octane unleaded petrol, which is used in cars and other vehicles. The refinery currently processes around 14.65 million metric tonnes of crude oil every year, slightly less than its maximum capacity of 15 million metric tonnes. MRPL was initially a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the A.V. Birla Group to build a refinery that would help meet India’s growing demand for petroleum products. The refinery started with a small capacity of 3 million metric tonnes per year. Over the years, it has grown and expanded its processing capacity.

Today, MRPL continues to play a key role in India’s oil refining and petrochemical industries. The company’s operations are not just limited to refining crude oil; it also focuses on producing petrochemicals and meeting the country’s growing demand for energy products. It remains a critical part of the country’s energy security and plays a vital role in the refining sector. 

India’s oil and gas industry is very important for the country. India uses a lot of oil for cars, factories, and electricity. In the future, India will need even more oil. By 2045, the country’s demand for oil is expected to double. Diesel will be used a lot, making up most of the oil used in the country. India is also using more natural gas. This is because natural gas is cleaner than other types of fuel. It is being used more in power plants and factories. The country will need more gas in the future. India does not have enough oil, so it buys oil from other countries. In 2024, India’s oil imports increased. To keep up with the demand, India is increasing its ability to refine oil. The country plans to add more refining capacity to make more products like diesel and gasoline. The government is also making sure that India has enough oil reserves for emergencies. They are building more storage for oil. This will help when prices go up or if there are problems with the oil supply. To help the industry grow, the government is making it easier for foreign companies to invest in India’s oil and gas sector. The government has also set rules to support clean fuels, like ethanol and biogas. In short, India’s oil and gas industry is growing because the country needs more energy. The government is helping by making policies to support the industry and encouraging investment. This will help India power its cars, factories, and homes in the future. 

Mangalore Refinery and Petrochemicals Limited (MRPL) is a big company in India’s oil industry. It is owned by ONGC, one of India’s largest and most trusted oil companies. Being owned by ONGC gives MRPL financial strength and helps it gain trust in the market. MRPL has a special advantage because it can process different types of crude oil. This means the company can adjust to changes in the market. It is the only refinery in India with two hydrocrackers. These machines help make high-quality diesel, which is important for transport and industries. MRPL is also one of the only two refineries in India that have two machines called Continuous Catalytic Reformers (CCRs). These machines help make high-octane petrol, which is needed for cars and other vehicles. MRPL can process 15 million metric tonnes of crude oil every year. This is a huge amount and helps meet the country’s growing demand for petroleum products. MRPL also makes polypropylene, which is a material used to make many products like plastic, packaging, and clothes. This adds more value to MRPL’s business. The link with ONGC is very important for MRPL. ONGC is a huge and trusted company. This connection helps MRPL with money, technology, and experience. ONGC also gives MRPL access to many customers in India and abroad. Since ONGC took control of MRPL, the company has grown. MRPL is focused on growing its refining capacity to meet future demand. It is also working on better technology to be more eco-friendly and reduce pollution. 

In short, MRPL is a strong company because it can process many types of crude oil, produce high-quality products, and has the support of ONGC. This makes MRPL a key player in India’s oil and gas industry. 

Latest Stock News: 

The stock price of Mangalore Refinery and Petrochemicals Limited (MRPL) has been moving up after a period of small declines and sideways movement. On March 22, 2025, the stock was priced at ₹117.88 on the National Stock Exchange (NSE), showing a positive change. This rise in stock price can be seen as a breakout from a narrow trading range, indicating that the stock is now in an upward trend. The Relative Strength Index (RSI) on both intraday and daily charts is showing positive signals, which means the stock may continue to rise. Also, the candlestick patterns on these charts suggest that the stock is likely to go higher. MRPL’s Gross Refining Margin (GRM) improved to $10.36 per barrel for the full year, up from $9.88 per barrel the previous year, showing good performance in refining. The company also reported a profit after tax (PAT) of ₹3,596 crore for FY2023- 24, which is 36.32% higher than the previous year. Because of these good results and the positive chart patterns, HDFC Securities has recommended buying MRPL shares as a short-term investment, suggesting that now is a good time to invest in the stock. 

Potentials: 

MRPL has big plans for its future. Right now, it is focusing on changing the way it works. Instead of selling fuel to other countries, it wants to sell more fuel directly to people in southern India. MRPL plans to grow its network of petrol stations from just 71 to 1,800 by 2027. This will help the company earn steady money because it will be selling directly to customers. Apart from selling fuel, MRPL also wants to grow its business in chemicals. It plans to spend ₹47,000 crore (around $5.7 billion) to build a new factory in Karnataka. This factory will make chemicals used in making plastic and paint. These are products that will always be in demand, so this is a smart move for MRPL. The factory will be ready in 3 to 5 years. Another part of MRPL’s plan is to build a new plant that will make ethanol from farming waste. This will help the company use things like corn and cotton stalks to make ethanol, which is good for the environment. They are also working on improving their pollution control systems to meet strict rules. 

Analyst Insights: 

  • Market capitalisation: ₹ 23,753 Cr. 
  • Current Price:₹ 136 
  • 52-Week High/Low: ₹ 260 / 98.9 
  • Stock P/E: 28.6 
  • Dividend Yield: 2.21% 
  • Return on Capital Employed (ROCE): 25.8% 
  • Return on Equity: 31.9% 

MRPL is also making its power systems better and updating its refinery to improve production. They are setting up a new plant to make a special chemical used in medicines and perfumes. This will allow MRPL to make this chemical on its own without relying on others. All of these plans show that MRPL wants to grow its business, follow environmental rules, and keep up with changes in the industry. 

Mangalore Refinery and Petrochemicals Ltd (MRPL) has shown good growth over the years. Its net profit has increased by 60% each year for the past five years. This shows that the company is doing well in making money. The company has a return on equity (ROE) of 17%, which means it is earning a good return on the money invested by its shareholders. 

MRPLcano refines 15 million metric tonnes of oil per year. This large refining capacity helps the company produce a lot of fuel and petrochemical products, which are in high demand. The company also has an operating profit margin of 12%, which means it keeps a good share of the revenue it generates after costs. 

The company is financially stable, with a debt-to-equity ratio of 0.3. This low ratio shows that it does not rely too much on borrowing to run its business. MRPL has 101 fuel stations and plans to open more in the future, helping it grow its retail business. 

Even though MRPL’s profits dropped slightly in the last quarter, it has shown consistent growth in the past. The company’s average yearly revenue growth is 8%, showing that it is still growing in the long term. All of these factors point to MRPL being a strong company with a good future ahead. 

IREDA Ltd
IREDA Shares Surge 3.94% as Borrowing Limit Rises by ₹5,000 Crore for FY25

Business and Industry Overview: 

Indian Renewable Energy Limited (IREL) and the Indian Renewable Energy Development Agency (IREDA) are both working towards clean energy in India. IREL is a private company that focuses on solar energy projects and explores new investments in power generation. It helps set up rooftop solar plants and looks for ways to grow in the renewable sector. IREDA, on the other hand, is a government-backed financial institution. It provides loans and financial help to projects related to solar, wind, hydro, and energy efficiency. IREDA was set up in 1987 and works under the Ministry of New and Renewable Energy (MNRE). It ensures that businesses and individuals get funding to invest in green energy. The company also follows strict rules for ethical business, data security, and quality management. Both organizations aim to make renewable energy more affordable and accessible. They want India to use cleaner power sources, reduce pollution, and move towards a sustainable future. 

India’s renewable energy industry is growing very fast. The government wants to produce 500 GW of electricity from clean energy sources like solar, wind, and hydro by 2030. In 2023, India added 13.5 GW of renewable energy capacity. This was done with an investment of Rs. 74,000 crore (US$ 8.90 billion). India has a bigger plan to invest Rs. 9.22 lakh crore (US$ 109.50 billion) to build more energy infrastructure and meet the demand, which is expected to be 458 GW by 2032. 

The government is focusing a lot on solar energy. In the 2024-2025 budget, they increased the money for building solar power grids to Rs. 8,500 crore (US$ 1.02 billion), which is double what they spent the year before. The government is also supporting clean energy like green hydrogen and electric vehicles (EVs). Indian companies plan to invest Rs. 67,42,400 crore (US$ 800 billion) in these areas. 

The government is also helping farmers through the PM-KUSUM scheme, which gives money to farmers to set up solar pumps and solar power plants. This helps them with their farming and water needs. In Rajasthan, the government signed a deal with NTPC Green Energy to set up 28,500 MW of renewable energy projects. 

As of 2023, India is ranked 4th in the world for wind power, solar power, and overall renewable energy capacity. India is also a top leader in cutting down carbon emissions. It is one of the top three countries in the world for reporting and reducing carbon emissions. With more investments, clear government plans, and a focus on clean energy, India is becoming a leader in renewable energy and is moving towards a cleaner and more sustainable future. 

IREDA is a strong player in India’s renewable energy market. It gets a lot of support from the government, which helps it provide loans and funding for clean energy projects. IREDA has been around since 1987 and is known for helping build projects in solar, wind, and energy efficiency. It works closely with the government’s plans to increase clean energy in the country. IREDA also has a good reputation for being reliable and transparent in its work. As the demand for renewable energy grows, IREDA is in a good position to keep helping develop new energy sources, even though there are new private companies entering the market. 

Latest Stock News: 

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) have dropped 53% from their highest value of Rs 310 in July 2024. The stock is now in the oversold zone, with an RSI (Relative Strength Index) of 26.6, meaning the stock could be undervalued. When the RSI is below 30, it shows the stock is oversold, and when it’s above 70, it’s overbought. On March 20, 2024, the stock went up by 4.12% to Rs 143.85, and the company’s market value is Rs 38,623 crore. 

The stock reached its lowest point in 52 weeks at Rs 124.50 on March 20, 2024, but experts see Rs 137 as a strong support level and Rs 145 as resistance. If the stock goes above Rs 145, it could rise to Rs 150 or even Rs 180 soon. 

IREDA is a government-run company under the Ministry of New and Renewable Energy (MNRE). It has been helping promote renewable energy and energy-saving projects for over 36 years. Recently, the company’s borrowing plan for 2024-25 was increased by Rs 5,000 crore to Rs 29,200 crore, which will help fund more projects. This news caused the stock to go up by 4.6%. 

However, IREDA also faced some challenges. The Reserve Bank of India (RBI) did not approve its request to invest in a 900 MW Hydro Electric Power Project in Nepal. Financially, IREDA saw a rise in Non-Performing Assets (NPAs), which went up by 30.4% to Rs 1,845.5 crore, and Net NPAs increased by 53.75%. But the company still reported a 39% increase in Net Interest Income (NII) to Rs 622.25 crore, and its net profit grew by 27% to Rs 425.4 crore. 

Even though the stock has fallen 35% this year, the company’s strong growth in profits and new borrowing plans show that it could recover and perform better in the future. 

IREDA is a government company that supports renewable energy projects in India. It plans to raise ₹29,500 crore this year to fund these projects. Of this amount, ₹25,000 crore will come from loans, and ₹4,500 crore will come from selling company shares. The company is seeking government approval to reduce its ownership by up to 10% to make this possible. 

IREDA also aims to increase its loan portfolio from ₹59,650 crore at the end of last year to over ₹85,000 crore by the end of this year. To maintain its strong financial rating, the company is working to keep a healthy balance between its loans and available capital. 

In September 2024, the Indian government announced plans to sell a 7% stake in IREDA through a share sale. This sale aims to raise up to ₹4,500 crore and will help fund clean energy projects across the country. 

Potentials: 

Looking ahead, IREDA is exploring international expansion opportunities. The company has submitted a draft Green Taxonomy to the Ministry of New & Renewable Energy, which is in an advanced stage. This initiative aims to increase funding for climate-related projects and attract global green investments. 

Overall, IREDA’s plans focus on raising funds, expanding its loan portfolio, maintaining a strong financial position, and supporting India’s renewable energy goals. 

Analyst Insights: 

  • Market capitalisation: ₹ 39,258 Cr. 
  • Current Price: ₹ 146 
  • 52-Week High/Low:₹ 310 / 124 
  • Stock P/E: 25.6 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 9.30 % 
  • Return on Equity: 17.3 % 

IREDA has shown strong growth, with profits increasing by about 33.9% per year over the last five years. The company’s earnings and profits are rising, which suggests it’s doing well. Its revenue has also gone up a lot in the past year. But, the stock price is high compared to its earnings, meaning it might be expensive right now. Also, the company doesn’t pay dividends and has some issues with how it handles interest costs. Still, since IREDA is a leader in the green energy field and the government is pushing for more renewable energy, the company has good chances of continuing to grow. This makes it a Hold for now. 

Hitachi Energy Ltd
Hitachi Energy India’s ₹2,000 Crore Expansion Plan – What Investors Need to Know

Business and Industry Overview: 

Hitachi Energy has been working in India for 75 years, helping to build important power and transport systems. The company started in 1949 and opened its first factory in Vadodara in 1962. Over the years, it has grown and now has 19 factories in 8 locations with 7,300 employees. 

The company plays a big role in India’s electricity and transport sectors. It helped bring HVDC technology, which improves power supply, and now more than half of India’s HVDC systems use it. In transport, it works with Indian Railways to make Scott Transformers, which help high-speed trains and metro systems. More than 90% of metro trains in India use Hitachi Energy’s power technology. 

Hitachi Energy is also focused on clean and reliable energy for the future. It was formed in 2019 as a joint venture between Hitachi and ABB Power Grids. The company provides power solutions to industries and utility companies. It continues to invest in better and greener technology to support India’s growth. 

India is one of the biggest producers and users of electricity. As of April 2024, the country has a total power capacity of 442.85 GW. More people, higher electricity use, and growing demand will increase power needs in the future. In FY23, power use grew by 9.5%, reaching 1,503.65 billion units (BU). India is also focusing on clean energy. The country plans to increase non-fossil fuel power to 500 GW by 2031-32. The government has increased funding for solar power, green hydrogen, and energy storage. To reduce coal use, 81 thermal plants will switch to renewable energy by 2026. A Rs. 9.15 lakh crore plan is in place to improve power supply and meet future needs. The power sector is attracting big investments, with US$ 18.28 billion in FDI since 2000. In the next 5-7 years, Rs. 17 lakh crore more investment is expected. India is working toward better, cleaner, and more reliable electricity.Hitachi Cooling and Heating is a well-known air conditioner brand in North India. In a highly competitive market, it has a 14% share in the B2C segment, 25% in PAC/CST, and 10% in VRF. In Rajasthan, the brand is one of the leading players, holding the same market share in these segments. This shows the company’s strong presence and growing demand for its products in the region. 

Latest Stock News: 

Hitachi Energy India Ltd’s stock rose 6.75% to ₹13,010 on the NSE, marking its third straight session of gains. Over the past year, the stock has surged 106.82%, outperforming both the NIFTY (-0.46%) and Nifty Energy index (-23.15%). In the last month, it has gained 5.91%, closely tracking the 5.96% rise in the Nifty Energy index. 

The stock’s P/E ratio is 164.73, based on earnings ending December 2024. Goldman Sachs has given a ‘buy’ rating with a target price of ₹13,350, citing strong order inflows and market dominance. Hitachi Energy holds a 50% market share in the domestic power sector and is strengthening its position by locally manufacturing 80-90% of HVDC project components under the ‘Make in India’ initiative. 

During the day, the stock rose 7.9% to ₹13,150, with trading volume at 1.2 times its 30-day average. Analysts remain positive on its growth outlook and strong order pipeline, reinforcing confidence in its future performance. 

Potentials: 

Hitachi Energy India will invest ₹2,000 crore over the next 4-5 years. This money will be used to expand its production capacity for transformers, including dry and traction transformers. It will also strengthen its high-voltage direct current (HVDC) technology. The company plans to hire and train more people to support its growing operations. Digital tools will be used to improve efficiency and flexibility. Hitachi Energy is focusing on clean energy solutions to support India’s energy transition. It will also follow sustainable practices in its products and operations. The company has been in India for 75 years and continues to play a key role in the country’s power sector. 

Analyst Insights: 

  • Market capitalisation: ₹ 57,283 Cr. 
  • Current Price: ₹ 13,516 
  • 52-Week High/Low: ₹ 16,550 / 6,267 
  • P/E Ratio : 183 
  • Dividend Yield: 0.03 % 
  • Return on Capital Employed (ROCE): 17.8 % 
  • Return on Equity (ROE): 12.7 % 

Hitachi Energy has strong growth potential with a dominant market position and a ₹2,000 crore investment plan to expand transformer production, HVDC capabilities, and digitalization. It benefits from India’s clean energy push and government support. However, the stock is highly overvalued with a P/E ratio of 183, low ROE of 12.7%, and weak dividend payouts. While order inflows are strong, valuation concerns and market volatility pose risks. Investors should HOLD if already invested but wait for a price correction before entering, as the stock is expensive at current levels.

Oil India Ltd
Oil India Ltd. (OIL) Stock Near 52-Week Low: Should You Buy, Hold, or Sell?

Business and Industry Overview:

Oil India Ltd (OIL) is a government company that finds, produces, and transports crude oil, natural gas, and LPG. It works under the Ministry of Petroleum and Natural Gas and has Maharatna status, making it one of India’s top public companies. Its main office is in Duliajan, Assam, with other offices in Noida, Kolkata, Guwahati, and Jodhpur. It was first found in Digboi, Assam, in 1889. The company started in 1959 as a joint venture between Burmah Oil Company and the Indian government. In 1982, the government took full control. In 1995, it became a public company. It produces crude oil, natural gas, and LPG every year. Most of the oil and gas comes from Northeast India. The company also works in Rajasthan, Andhra Pradesh, Orissa, Tamil Nadu, Mizoram, and Arunachal Pradesh. OIL has over 100,000 square kilometers of land to find more oil and gas. It also works in Libya, Gabon, Nigeria, Sudan, Venezuela, Mozambique, Yemen, Iran, Bangladesh, and the USA. 

OIL owns a pipeline from Duliajan to Barauni, Bihar to transport crude oil. It also bought Numaligarh Refinery Limited, making it a subsidiary. The company has found new oil and gas in Mozambique, Gabon, and Libya and invested in shale oil in the USA. OIL is looking for more oil and gas in Northeast India. It has started projects in Assam, Arunachal Pradesh, and Mizoram to find oil in difficult places. The company has over 100 years of experience and is growing in India and other countries. 

With India targeting to achieve a $5 trillion economy by 2025–26, there is a huge surge in the petrochemical industry to fulfil the demand of the growing economy. Petrochemicals would fuel various industries that will contribute to the growth of the economy, such as agriculture, automotive, packaging, construction, manufacturing, and many more. Hence, this industry cannot be ignored, and the petrochemical demand is expected to reach $1 trillion by 2040. Recently, the Government of India has taken various initiatives, including 100% FDI through automatic routes, establishing Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs). It is also setting up infrastructure like 10-plus plastic parks which are to be executed between 2020 and 2035. OIL maintained an industry leadership position with a market share of 44.6% and sales volume of 85.8 MMT.  

Latest Stock News: 

Oil India Ltd’s stock price is ₹345.15, down 5.67% today at 13:19 IST on the NSE. The stock has been falling for five days in a row, dropping a total of 12.08%. In the past year, it has fallen 5.27%, while the NIFTY index has gone up by 0.67%. However, the Nifty Energy index (which includes Oil India Ltd) has dropped 22.84% in the same period. 

In the past one month, Oil India Ltd’s stock has dropped 15.31%, while the Nifty Energy index has fallen 8.09%. The trading volume today is 29.77 lakh shares, close to the monthly average of 29.69 lakh shares. 

The March futures contract for Oil India Ltd is trading at ₹346.95, down 5.76% today. The stock is still above its 52-week low but is trading below key moving averages, showing a bearish trend. However, the company offers a high dividend yield of 5.02%, which may attract long-term investors. The price-to-earnings (P/E) ratio of the stock is 9.08 based on its earnings up to December 2024. 

Oil India Ltd has partnered with Mineral Exploration and Consultancy Limited (MECL) to explore and develop important minerals in India and other countries. This will help India’s energy security and growth. Recently, the company’s revenue dropped 13% from ₹9,614 crore in Q3FY24 to ₹8,337 crore in Q3FY25, but it increased 15% from the last quarter. Net profit fell 44% in one year and 29% from the last quarter. The company plans to produce more oil and gas, aiming for 4 million tons of oil and 5 BCM of gas annually. The IGGL and DNPL pipelines will improve gas transport and meet growing demand. Oil India will invest ₹6,000–7,000 crore over three years, mainly for drilling in Assam, Rajasthan, and Andaman. The Numaligarh Refinery is expanding from 3 million to 9 million tons with an investment of ₹32,000 crore. Oil India focuses on crude oil, natural gas, LPG, pipelines, and renewable energy. 

Potentials:

Oil India Limited has big plans for the future. It wants to reduce pollution and become a net-zero emissions company by 2040. To do this, it will use clean energy like natural gas, solar, and wind power. It also plans to reduce methane gas pollution by 2030 and invest in new green technology. 

The company will increase oil and gas production by tripling refining capacity and doubling gas production in the next five to six years. It will also build a gas pipeline to connect the North Brahmaputra fields. 

For the environment, Oil India plans to save more water, stop using single-use plastic, and reduce waste gas burning (flaring) by 2030. It also aims to protect forests, cut methane pollution, and lower its carbon footprint. 

Oil India is also investing in new technologies and combining them with its current work. This will help the company grow while supporting India’s clean energy goals. 

Analyst Insights:

  • Market capitalisation: 55,744 Cr. 
  • Current Price: ₹ 343 
  • 52-Week High/Low: ₹ 768 / 341 
  • P/E Ratio: 7.56 
  • Dividend Yield:3.06 % 
  • Return on Capital Employed (ROCE): 17.7 % 
  • Return on Equity (ROE): 18.0 % 

Oil India Ltd is trading at ₹343, close to its 52-week low of ₹341. The P/E ratio is 7.56, meaning the stock is not very expensive. The dividend yield is 3.06%, and the company has a healthy payout of 25.7%. 

However, profits have dropped by 36.1%, and interest costs have increased by 22.51%. The company takes longer to collect payments, which may hurt cash flow. Operating profit to interest ratio is at its lowest (8.82 times). 

The stock is in a bearish trend. It has fallen 15.35% since February 10. Technical indicators like MACD, Bollinger Bands, and KST suggest further decline. Long-term investors may hold due to good dividends. Short-term traders should sell as the trend is weak. Or wait for improvement before buying. 

BPCL Ltd.
BPCL Share Price Falls for Fifth Day: Key Market Trends, Nifty & Energy Sector Impact

Business and Industry Overview: 

Bharat Petroleum Corporation Limited (BPCL) is a government-owned company that refines crude oil and sells petroleum products. It has three big refineries in Mumbai, Kochi, and Bina, with a total capacity of 35.3 million metric tons per year. BPCL holds about 14-15% of India’s refining capacity. The company plans to invest ₹10,000 crore in projects like refinery expansion, a petrochemical plant, gas distribution, and marketing. Most of its revenue comes from diesel (52%), petrol (23.4%), and LPG (11.3%). BPCL runs around 20,000 petrol pumps, 82 fuel depots, and 54 LPG bottling plants, serving over 9 crore LPG customers. It also supplies fuel to industries, airlines, and lubricant markets under the MAK brand. In natural gas, it serves many LNG customers and operates in 50 regions through Bharat Gas Resources Ltd. BPCL is involved in oil exploration in India and other countries, with stakes in Russian oil fields. It also has partnerships in LNG imports (Petronet LNG) and city gas distribution (Indraprastha Gas, where it owns 22.5%). The company merged Bharat Oman Refineries Ltd. with BPCL and is in the final stage of merging Bharat Gas Resources Ltd. In 2022, the government canceled BPCL’s privatization plans. In 2021, BPCL sold its 61.6% stake in Numaligarh Refinery Ltd. for ₹9,876 crore. Arun Kumar Singh became Chairman & Managing Director in 2021, and Vetsa Ramakrishna Gupta is the Chief Financial Officer. 

India’s oil and gas industry is growing rapidly and plays a major role in the economy. Oil demand is expected to double to 11 million barrels per day by 2045, while diesel consumption could reach 163 million tonnes by 2029-30. Natural gas use is also rising, with an annual growth rate of 9% and an expected increase of 25 billion cubic meters until 2024. The country’s refining capacity has grown from 215.1 MMTPA to 256.8 MMTPA in the past decade and is set to reach 310 MMTPA by 2028. There are also plans to double refining capacity to 450-500 million tonnes by 2030. The government is encouraging investments by allowing 100% FDI in various segments and allocating Rs. 497.25 crore (US$ 59.75 million) in the 2024-25 budget for pipeline infrastructure. Companies like Jio-bp and ONGC are making major investments, with ONGC alone planning $4 billion for exploration. India is also working on improving oil storage by commercializing 50% of its Strategic Petroleum Reserves. Crude oil imports increased by 5.7% in January 2024, reinforcing India’s position as the third-largest oil consumer in the world. The country is expanding its gas infrastructure, with over 10,000 km of crude pipelines and 12,500 km of refined product pipelines. There is also a strong push for biofuels, with ethanol blending targets being moved up to 2025-26. With rapid urbanization and industrial growth, India’s energy demand is rising faster than in many other countries, making the sector attractive for investors. 

Bharat Petroleum Corporation Limited (BPCL) is India’s second-largest oil marketing company and a key government-owned oil producer. In FY23, it held a 25% market share with sales of 48.92 MMT. It ranks as the sixth-largest company in India by turnover. BPCL was listed 309th on the Fortune Global 500 in 2020 and 1052nd on the Forbes Global 2000 in 2023. The company runs refineries in Bina, Kochi, and Mumbai, operating under the Ministry of Petroleum and Natural Gas. Its main product, Bharatgas, has led the LPG market for over 30 years. BPCL has strong infrastructure with well-placed refineries and marketing networks. In 2017, it received “MAHARATNA” status from the Indian government. Its headquarters is in Mumbai. 

Latest Stock News: 

As of February 28, 2025, BPCL is trading at Rs 237.75, down 2.86% on the NSE at 13:19 IST. This is its fifth straight day of decline. Over the last year, the stock has fallen 21.26%, while NIFTY gained 0.67%, and Nifty Energy dropped 22.84%. 

In the past month, BPCL has fallen 7.49%, and Nifty Energy is down 8.09%. Today, Nifty Energy is at 30,659.25, down 2.25%. The NIFTY index is at 22,131.1, down 1.84%, and the Sensex is at 73,247.33, down 1.83%. 

BPCL’s trading volume today is 52.96 lakh shares, lower than its one-month average of 84.15 lakh shares. The March futures contract is at Rs 238.9, down 2.89%. The stock’s PE ratio is 6.87, based on earnings till December 2024. 

Potentials: 

Bharat Petroleum (BPCL) is focusing on petrochemicals, green energy, and fuel marketing. BPCL is expanding into petrochemicals to offer better alternatives to fuel. It is building two new projects at Kochi and Bina refineries, which will be ready by 2027 and 2028. In green energy, BPCL plans to set up 2 GW of renewable energy by 2025 and 10 GW by 2035. It is also investing in green hydrogen, biogas, carbon capture, wind, and solar power. BPCL is growing its fuel business by adding 4,000 new outlets in five years, increasing the total to 26,000. BPCL aims to reduce its carbon emissions to zero by 2040 under its ‘Project Aspire’ plan. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,02,974 Cr. 
  • Current Price: ₹ 237 
  • 52-Week High/Low₹ 376 / 236 
  • P/E Ratio: 7.35 
  • Dividend Yield: 8.85 % 
  • Return on Capital Employed (ROCE): 32.1 % 
  • Return on Equity (ROE): 41.9 % 

BPCL is trading at ₹237, close to its 52-week low of ₹236. The stock has fallen 21.26% in the last year, underperforming the market. However, it offers a strong dividend yield of 8.85% and has shown good profit growth of 28.2% CAGR over five years. The company has high returns on capital (ROCE 32.1%) and equity (ROE 41.9%) and is expanding into petrochemicals, renewable energy, and fuel marketing. While the stock has been weak recently, its strong fundamentals and future growth plans make it a good long-term investment. Investors can hold for now and consider buying on further dips. 

Indian Oil Corporation
Indian Oil Corporation Stock Analysis: 52-Week Low and It Remains a Quality Stock

Business and Industry Overview: 

Indian Oil Corporation Limited is the leading oil and gas-producing PSU in India. The company is under the ownership of the government of India and the Ministry of Petroleum & Natural Gas. It is the largest in terms of both capacity and revenue, with a refining capacity of 80.55 MMTPA. IOCL offers a diverse range of products that include oil, gas, petrochemicals, and alternative energy sources. It has over 37500 fuel stations across the country. The company is well-known for its advanced technologies and innovative research and development in the petrochemical industry. It was ranked 116th on Fortune’s 2022 Global 500 list of the world’s largest corporations. It has maintained its leadership in the ‘BW Top 500’ for the third consecutive year and has been recognized as the most respected oil and gas company by Business World. The company aims at achieving net zero emissions by 2046. It is pioneering green initiatives, including Hydrogen Mobility, hydrogen Transportation, Biofuels, Electric Mobility, Solar Cooktop,s and Minimising Water footprints, which are central to our strategic vision for a cleaner energy future. 

With India targeting to achieve a $5 trillion economy by 2025–26, there is a huge surge in the petrochemical industry to fulfil the demand of the growing economy. Petrochemicals would fuel various industries that will contribute to the growth of the economy, such as agriculture, automotive, packaging, construction, manufacturing, and many more. Hence, this industry cannot be ignored, and the petrochemical demand is expected to reach $1 trillion by 2040. Recently, the Government of India has taken various initiatives, including 100% FDI through automatic routes, establishing Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs). It is also setting up infrastructure like 10-plus plastic parks which are to be executed between 2020 and 2035. IOC being one of the leading petrochemical producer companies in India, has a 42% market share in petroleum Oil and lubricants with over 60,900 touch points. It owns 11 refineries across India. It also has its subsidiary functioning across India like IndianOil (Mauritius) Limited,  Lanka IOCPLC  in Sri Lanka, 10C Middle East FZE , 10C Sweden AB , IOCL (USA) Inc. are few of them.  

Latest Stock News: 

ADNOC Gas (Abu Dhabi National Oil Company), a natural gas producer based in Abu Dhabi, UAE, has signed a long-term sales and purchase agreement (SPA) with Indian Oil Corporation Ltd. to supply liquefied natural gas (LNG) for 14 years. This agreement is valued between $7 billion and $9 billion and will commence in 2026, providing IndianOil with up to 1.2 million metric tonnes of LNG annually. The agreement supports India’s objective of increasing the share of gas in its energy mix to 15% by 2030 and demonstrates ADNOC Gas’s commitment to lower-carbon energy solutions. The LNG will be sourced from ADNOC Gas’s Das Island facility, which has a production capacity of 6 million metric tonnes per year and a proven track record of reliability. 

This deal is part of ADNOC Gas’s strategy to secure long-term contracts in growing Asian markets, diversifying sources beyond traditional suppliers like Qatar and Russia, and thereby strengthening India’s energy security. Additionally, the agreement reinforces India’s strategic partnership with the UAE, a key supplier of crude oil, and opens up opportunities for further investments in refining, petrochemicals, and renewable energy. 

Indian Oil Corporation is trading -0.64% lower at Rs 116.50 as compared to its last closing price. Indian Oil Corporation has been trading in the price range of 117.55 & 114.35. Indian Oil Corporation has given -14.05% in this year & -6.28% in the last 5 days. Indian Oil Corporation has TTM P/E ratio 17.67 as compared to the sector P/E of 8.97.  

Potentials: 

The Indian government is actively working to increase the share of natural gas in the country’s energy mix from 6% to 15% by 2030 as part of its clean energy transition. Aligning with this vision, Indian Oil Corporation (IOCL) has signed a 14-year sales and purchase agreement with ADNOC Gas to import liquefied natural gas (LNG), ensuring a stable and long-term supply to meet rising domestic demand. From a valuation perspective, IOCL’s stock is currently trading at 0.90 times its book value, indicating it is relatively undervalued compared to its intrinsic worth. The company also offers an attractive dividend yield of 10.2%, making it appealing to income-focused investors. Over the past five years, IOCL has demonstrated strong profit growth, delivering a CAGR of 19.1%, reflecting its operational efficiency and strategic expansion. Additionally, the company has maintained a healthy dividend payout ratio of 42.6%, ensuring consistent returns for its shareholders while balancing reinvestment in growth initiatives. 

Analyst Insights: 

On Monday, Indian Oil Corporation announced a 76.57% decline in its consolidated net profit, totalling Rs 2,115 crore for the third quarter (Q3) of the financial year 2024-25 (FY25), down from Rs 9,029.56 crore for the same period last year. The significant decrease in profits was attributed to diminished refining margins and increased expenses during the quarter. The Consolidated operational revenue saw a slight dip of 5% to Rs 2,15,522 crore, compared to Rs 2,26,892 crore reported in the same quarter a year earlier. 

Expenses remained largely unchanged at Rs 2.19 trillion, up slightly from Rs 2.17 trillion. However, compared to the previous quarter, expenses increased by 8.4% from Rs 2.02 trillion. The market capitalization of Indian Oil is ₹ 1,64,654 Cr, with a stock P/E of 17.0 and ROCE of 21.1%. 

With the volatility in the oil and gas industry, the investors should hold the security for now and keep an eye on the changing market as there is a drop in the profit margin and since this industry is cyclical. The P/E ratio is 17 compared to the industry which is 18.95 and the ROCE is 21.1 which means that the comapy can generate good return on the capital employed.  

Adani Total Gas Q3 FY25 Results
Adani Total Gas Q3 FY25 Results: Profit Falls 19% to ₹142 Cr, Revenue Rises 13%

Adani Total Gas Ltd: Overview 

Adani Total Gas Ltd. (ATGL) is a joint venture between the Adani Group and TotalEnergies, a global integrated energy player. Founded in 2004, the company is a key player in the Indian natural gas distribution sector, focusing on the development and operation of city gas distribution (CGD) networks for both industrial and residential sectors. Adani Total Gas is involved in the distribution of piped natural gas (PNG) and compressed natural gas (CNG) to both domestic and commercial customers, particularly in cities across India. With the backing of the Adani Group, one of the largest business conglomerates in India, and TotalEnergies, a global energy giant, ATGL has leveraged its expertise to become a major provider of natural gas solutions in the country. 

The industry outlook for Adani Total Gas is highly promising, with the Indian government’s push toward cleaner energy sources, urbanization, and infrastructure development fuelling the demand for natural gas. Natural gas is seen as a transition fuel to meet India’s environmental goals, particularly in terms of reducing emissions from coal and oil, making it an attractive energy alternative. The Indian government’s focus on expanding CGD networks across multiple cities, combined with the growing adoption of CNG for transportation and PNG for cooking and industrial use, is expected to drive growth for ATGL in the coming years. Moreover, India’s increasing focus on sustainable and cleaner energy sources presents an opportunity for the company to expand its footprint and contribute to India’s energy transition. The development of new gas-based infrastructure, rising demand for natural gas, and the company’s strong positioning in both the industrial and residential markets provide a solid foundation for long-term growth. Furthermore, global energy trends towards decarbonization and the rising adoption of CNG vehicles also offer significant growth opportunities for ATGL, both in domestic and international markets. 

Latest Stock News 

CNG station network has expanded to 605 stations, with 58 new stations added during the year, including 28 new stations in the quarter under review. Additionally, our steel pipeline infrastructure has grown to 13,082-inch kilometres. On the domestic piped natural gas (PNG) front, ATGL now serves over 922,000 households. In the nine-month period, we added over 100,000 new connections, and during the December quarter, 28,677 connections were added. For industrial and commercial consumers, we have expanded our base to 8,913, adding 582 connections during the nine months, and 167 connections in the third quarter. Regarding emerging businesses, our e-mobility efforts have seen significant progress, with 1,914 EV charging points commissioned across 22 states and 4 Union Territories, covering 226 cities. We aim to reach approximately 3,000 charging points by March-April this year. Our EV charging infrastructure has also expanded to nearly 20 airports across India, making us one of the largest airport EV charge point operators in the country. On the gas front, ATGL faced two reductions in APM gas allocation. The first reduction, from 63% to 51%, occurred on October 16, 2024, followed by a second reduction from 51% to 37% on November 16, 2024. These reductions, combined with the increase in gas prices, resulted in an EBITDA of INR 272 crores for the quarter, with a PBT of INR 193 crores and a PAT of INR 143 crores. However, effective from January 16, 2025, the APM allocation for CNG has been increased from 37% to 51%, which is expected to have a positive impact in the current quarter. CNG continues to constitute 25% of our entire portfolio. 

Business Segments 

  • City Gas Distribution (CGD): The CGD segment forms the core of Adani Total Gas’s business. It involves the establishment and operation of pipelines that deliver natural gas to homes, businesses, and industries within designated urban areas. ATGL has expanded its CGD network across numerous cities in India, including major urban centers like Ahmedabad, Faridabad, and Khurja. With a commitment to sustainability and energy efficiency, the CGD segment is poised to remain a key revenue driver for ATGL. 
  • Compressed Natural Gas (CNG): The CNG segment is another important area for Adani Total Gas, focusing on providing CNG for vehicles as an alternative to conventional fuels like petrol and diesel. The Indian government has been encouraging the use of CNG vehicles as part of its efforts to reduce air pollution and dependence on oil imports. ATGL operates CNG stations in key cities, providing customers with a cleaner and more cost-effective fuel option.  
  • Piped Natural Gas (PNG): Adani Total Gas is also involved in the distribution of PNG to residential, commercial, and industrial customers. Piped natural gas offers significant convenience and cost advantages over traditional energy sources such as LPG and firewood. This segment is witnessing rapid growth as more urban households and businesses opt for natural gas for cooking, heating, and other industrial applications.  
  • Renewable Energy and Sustainable Solutions: With the global shift towards renewable energy, Adani Total Gas has also been exploring opportunities in the renewable energy space. The company has begun investing in renewable energy projects such as solar energy and green hydrogen, with an aim to complement its natural gas operations and contribute to India’s sustainability goals. 
  • Infrastructure Development and Management: The infrastructure development segment covers the planning, construction, and management of city gas distribution networks, as well as the development of fuelling stations for CNG vehicles. ATGL is actively involved in expanding the pipeline infrastructure, which is crucial for the transportation and distribution of natural gas. 

Subsidiary Information 

  • Adani Gas Limited: Adani Gas Limited is a subsidiary of Adani Total Gas that focuses on the development of city gas distribution networks. It operates in multiple cities and is responsible for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) to vehicles. The subsidiary plays a critical role in expanding the natural gas distribution network across India, contributing significantly to ATGL’s growth in both urban and semi-urban markets. 
  • Adani Green Energy Limited: Adani Green Energy Limited, a subsidiary within the Adani Group, is involved in the development of renewable energy projects, particularly in solar power. It focuses on generating clean energy through solar installations and contributes to Adani Total Gas’s strategic diversification into renewable energy.  
  • Adani Gas Infrastructure Limited (AGIL): AGIL is responsible for building and managing the infrastructure required for natural gas transportation and distribution. This subsidiary is pivotal in the expansion of ATGL’s pipeline networks and the establishment of CNG refuelling stations. 
  • Adani Transmission Limited: While primarily focused on the transmission of electricity, Adani Transmission is indirectly involved in the energy distribution network that complements Adani Total Gas’s operations. The synergy between both companies supports the broader Adani Group’s energy infrastructure goals, positioning ATGL to leverage integrated energy solutions as it expands its natural gas operations. 
  • Adani Renewable Energy Park Limited: A subsidiary dedicated to renewable energy initiatives, Adani Renewable Energy Park plays a key role in the development of large-scale renewable energy projects. The integration of renewable energy projects into ATGL’s portfolio strengthens the company’s position as a leader in both natural gas and clean energy solutions. 

Q3 FY25 Earnings 

  • Revenue of ₹1294 crore in Q3 FY25 up by 11.9% YoY from ₹1156 crore in Q3 FY24.  
  • EBITDA of ₹265 crore in this quarter at a margin of 20% compared to 25% in Q3 FY24. 
  • Profit of ₹142 crore in this quarter compared to a ₹177 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1156 1294 4378 4475 
Expenses 868 1030 3508 3371 
EBITDA 288 265 870 1104 
OPM 25% 20% 20% 25% 
Other Income 18 8 54 62 
Net Profit 177 142 546 668 
NPM 15.3% 10.9% 12.5% 14.9% 
EPS 1.6 1.3 4.9 6.1