5 Oil & Gas Stocks To Fuel Your Portfolio With Up To 42% Returns: ONGC, Indian Oil, BPCL, More

The Indian oil and gas sector stocks surged in June amid prevailing positive sentiment among investors, driven by the elimination of fears related to supply-side disruptions. Amid de-esclation of tensions between Israel and Iran, oil and gas sector stocks have again garnered significant investors' interest over the time.

The oil and gas sector is currently trading at a price-to-book (P/B) ratio of 1.7x, which is about 14% higher than its historical average of 1.5x. Similarly, the sector's price-to-earnings (P/E) ratio stands at 16.8x, reflecting a 30% premium over its long-term average of 12.9x. This indicates that the sector is currently valued higher than usual, according to a recent report by Motilal Oswal.

According to another report by Systematix Institutional Equities, the Indian oil and gas sector is likely to see strong growth through the financial year 2026-27. The sector is likely to grow despite significant volatility by the commodity in international markets.

Oil And Gas Sector Stocks: Top 5 Stocks To Buy

Nifty Oil and Gas has surged around 5.3% in one month, with MGL, Oil India Limited, Reliance, Hindustan Petroleum, Gujarat Gas Limited, etc, surging by more than 10% in June. For investors who are aiming to add oil and gas sector stocks in their portfolio for long-term gain, here are the latest stock market recommendations by Emkay Global Brokerage firm.

ONGC

Oil and Natural Gas Corporation (ONGC) shares have surged around 3.38% year to date (YTD) and by 94.44% in three years. ONGC shares were trading 0.43% higher at Rs 245.05 per share. Emkay Global, in its latest report, gave a 'Buy' rating for ONGC stock. The brokerage had indicated an upside of 15% for the stock and fixed a target price of Rs 280 per share.

Indian Oil Corporation (IOC)

Shares of Indian Oil Corporation (IOC) were trading 1.42% higher at Rs 149.90 per share on BSE on Friday at 2:38 pm. The company scrip touched an intraday high mark of Rs 150.25 apiece. The stock value has surged around 9.45% year to date (YTD) and declined around 11.82% in one year. Emkay Global has initiated a 'Buy' rating for the stock indicating a 15% upside with a target price of Rs 170 per share.

BPCL

Bharat Petroleum Corporation Limited (BPCL) shares were 3.47% higher at Rs 342.75 apiece on BSE at 2:44 pm with a market capitalisation of Rs 1,48,701.03 crore. The stock value has increased by around 16.10% year to date (YTD). The stock touched its intraday high mark of Rs 376 per share on BSE on 30 September, 2024. The brokerage had recommended a 'Buy' rating for the stock indicating a 21% upside with a target price of Rs 400 per share.

Additionally, the brokerage had indicated a 29% upside of Rs 390 per share for long-term. The stock was trading 0.86% lower at Rs 298.25 apiece. Gulf Oil Lubricants shares were given a 'Buy' rating with a 42% upside with a target price of Rs 1,800 per share.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.