Shares of major Indian oil and gas companies are back in focus after brokerage Emkay Global Financial Services released its latest outlook on the sector, highlighting potential upside across several key stocks including **Petronet LNG Ltd, Oil and Natural Gas Corporation, GAIL (India) Ltd, Hindustan Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, Indian Oil Corporation and Oil India Ltd.
According to the brokerage, these companies could deliver potential returns ranging from about 12% to 29% from their current market levels, depending on individual business fundamentals and valuation comfort.
Emkay Global has maintained a “Buy” rating on major oil marketing companies (OMCs) such as Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd. These companies operate across the fuel refining, marketing and distribution chain in India and remain key players in the country’s energy ecosystem. Analysts believe that despite fluctuations in global crude prices, the current valuations of these companies still offer meaningful upside potential.
In addition to the OMCs, the brokerage also reiterated a “Buy” rating on Petronet LNG Ltd, which plays a central role in India’s natural gas infrastructure by importing liquefied natural gas (LNG) and supplying it to industrial and utility customers. As India continues to push toward higher gas usage in its energy mix, companies involved in LNG import and gas distribution are expected to benefit from rising demand.
For upstream and gas transmission companies such as Oil and Natural Gas Corporation (ONGC), Oil India Ltd and GAIL (India) Ltd, Emkay Global assigned an “Add” rating. This recommendation generally implies that investors who already hold the stock may consider increasing their exposure gradually, although the upside potential may be relatively moderate compared with stocks that carry a stronger “Buy” recommendation.
Each of these companies operates in a different segment of the oil and gas value chain. Upstream producers like ONGC and Oil India benefit directly when global crude oil prices rise because their revenues are linked to the sale of oil and gas they extract. In contrast, oil marketing companies rely more heavily on refining margins, fuel demand and retail pricing dynamics.
Meanwhile, gas infrastructure companies such as GAIL and Petronet LNG depend on factors like natural gas demand growth, pipeline utilisation levels and LNG import economics. Because of these differences, analysts typically assess each segment separately even though they belong to the broader energy sector.
The brokerage’s positive stance comes at a time when global energy markets remain volatile due to geopolitical tensions and fluctuations in crude oil prices. Rising geopolitical risks often influence crude prices, which can have mixed implications across the oil and gas industry depending on the business model of individual companies.
Overall, Emkay Global believes that the current valuation levels of several Indian oil and gas companies provide reasonable room for upside, making the sector attractive for investors seeking exposure to energy-related stocks.