Budget 2025: Understanding Marginal Tax on ₹12.1 Lakh, ₹12.5 Lakh, and ₹12.75 Lakh

The Union Budget 2025 has raised the income tax exemption threshold to ₹12 lakh. This means individuals earning up to ₹12 lakh will not have to pay any tax. For salaried individuals, the limit effectively increases to ₹12.75 lakh due to a ₹75,000 standard deduction under the new tax regime for FY 2025-26.

This tax relief is possible due to revised tax slabs and an enhanced rebate of ₹60,000 under Section 87A. However, taxpayers earning slightly above ₹12 lahks, such as ₹12.1 lahks or ₹12.5 lakh, have raised concerns about how their tax will be calculated.

Marginal Relief for Those Earning Just Above ₹12 Lakh

For salaried individuals, the standard deduction provides direct tax benefits. Non-salaried taxpayers with an income slightly above ₹12 lakh can benefit from marginal relief. This ensures that individuals earning just over ₹12 lakh do not face a disproportionately high tax burden.

For example, a non-salaried individual earning ₹12.1 lakh would normally owe ₹61,500 in taxes based on standard tax slabs. However, due to marginal relief, their tax liability is reduced to just ₹10,000.

How Marginal Relief Works?

Marginal relief applies to individuals earning between ₹12 lakh and ₹12.75 lakh. If income exceeds ₹12.75 lakh, marginal relief no longer applies, and the taxpayer must pay the full tax amount as per the standard rates.

Income (₹) Tax Without Marginal Relief (₹) Tax With Marginal Relief (₹)
12,10,000 61,500 10,000
12,50,000 67,500 50,000
12,70,000 70,500 70,000
12,75,000 71,250 71,250 (No marginal relief)

Tax Calculation Example for ₹12.1 Lakh Income

Without marginal relief, the tax for ₹12.1 lakh income is calculated as:

Income Slab Tax Rate Tax Amount (₹)
₹0 – ₹4 lakh 0% 0
₹4 – ₹8 lakh 5% 20,000
₹8 – ₹12 lakh 10% 40,000
₹12L – ₹12.1L 15% 1,500
Total Tax 61,500

However, since income up to ₹12 lakh is tax-free due to the rebate, marginal relief is applied. The difference between ₹12.1 lakh and ₹12 lakh is ₹10,000, so marginal relief is calculated as:

Tax without relief (₹61,500) – Excess income (₹10,000) = ₹51,500 marginal relief

This reduces the final tax liability to just ₹10,000.

Rebate vs. Marginal Relief

  • Rebate: If income is up to ₹12 lakh, tax is completely waived under Section 87A.
  • Marginal Relief: If income is slightly above ₹12 lakh, the tax burden is reduced so that it does not exceed the additional income earned.

The government estimates that these tax changes will save taxpayers ₹1 lakh crore, increasing disposable income and providing greater financial flexibility.

Important Tax Changes in Budget 2025

  • Income up to ₹12 lakh is tax-free for individuals eligible for a rebate.
  • Salaried employees can claim a ₹75,000 standard deduction, making income up to ₹12.75 lakh tax-free.
  • Marginal relief is only available up to ₹12.75 lakh income.
  • Special rate incomes, like capital gains, are not eligible for the Section 87A rebate.

These changes aim to reduce the tax burden on middle-income earners while ensuring fairness for those earning slightly above the exemption threshold.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Mid-Day Top Gainers And Losers On February 04, 2025: LT And Tata Motors Lead Gains, Trent And Titan Among Top Losers

On February 4, 2025, benchmark equity indices BSE Sensex and Nifty50 were trading in the green as investors monitored tariff-related news from the US. By 12 PM, the BSE Sensex had risen by 625.82 points (0.81%) to 77,812.56, while the Nifty50 was up by 184.70 points (0.79%) at 23,545.75

As of 12:22:50 IST on 04-Feb-2025, here are the top gainers and losers in the market.

Mid-Day Top Gainers 

Symbol Open High Low LTP %chng
LT 3,316.00 3,427.00 3,307.25 3,417.60 3.9
TATAMOTORS 696.3 713.35 693.75 708.25 3.03
BEL 276 284 275.9 282.4 3.01
SHRIRAMFIN 556 564.5 545.4 562.05 2.91
CIPLA 1,425.90 1,463.25 1,423.50 1,461.70 2.9
  • LT: Opened at Rs 3,316.00, reached a high of Rs 3,427.00, and closed at Rs 3,417.60, gaining 3.9%.
  • TATA MOTORS: Opened at Rs 696.30, peaked at Rs 713.35, and closed at Rs 708.25, gaining 3.03%.
  • BEL: Opened at Rs 276, reached a high of Rs 284, and closed at Rs 282.40, gaining 3.01%.
  • SHRIRAMFIN: Opened at Rs 556, peaked at Rs 564.50, and closed at Rs 562.05, gaining 2.91%.
  • CIPLA: Opened at Rs 1,425.90, reached a high of Rs 1,463.25, and closed at Rs 1,461.70, gaining 2.9%.

Mid-Day Top Losers

Symbol Open High Low LTP %chng
TRENT 6,169.95 6,190.00 5,680.00 5,686.00 -7.32
ITCHOTELS 172 174 167.1 168 -1.98
TITAN 3,590.00 3,614.00 3,520.00 3,523.20 -1.59
BRITANNIA 5,118.00 5,118.00 5,011.15 5,045.40 -1.18
NESTLEIND 2,322.40 2,322.80 2,283.70 2,290.00 -1.17
  • TRENT: Opened at Rs 6,169.95, reached a high of Rs 6,190.00, and closed at Rs 5,686.00, losing 7.32%.
  • ITCHOTELS: Opened at Rs 172, peaked at Rs 174, and closed at Rs 168, losing 1.98%.
  • TITAN: Opened at Rs 3,590.00, reached a high of Rs 3,614.00, and closed at Rs 3,523.20, losing 1.59%.
  • BRITANNIA: Opened at Rs 5,118.00, reached a high of Rs 5,118.00, and closed at Rs 5,045.40, losing 1.18%.
  • NESTLEIND: Opened at Rs 2,322.40, peaked at Rs 2,322.80, and closed at Rs 2,290.00, losing 1.17%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Alembic Pharma Q3 FY25 Results: PAT Drops 23.29% Due to Market Headwinds

Alembic Pharma reported a 23.29% year-on-year (Y-o-Y) drop in its profit after tax (PAT) for Q3 FY25, with PAT standing at ₹138.42 crore, down from ₹180.45 crore in Q3 FY24. The company’s revenue from operations increased by 3.8% Y-o-Y, reaching ₹1,692.74 crore in Q3 FY25, up from ₹1,630.57 crore in the same quarter last year.

Reason for Decline

Alembic’s Managing Director, Shaunak Amin, explained that the drop in PAT was due to market headwinds in the acute segment. He also mentioned that efforts to improve field force efficiency through automation and artificial intelligence (AI) impacted quarterly growth.

Operating Performance

At the operating level, Alembic’s earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to ₹271 crore, with an adjusted EBITDA margin of 16%. This was a slight increase from ₹269 crore and a 16.5% margin in the same quarter last year.

Performance in Key Segments

Alembic’s India branded business grew by 3% to ₹614 crore, largely driven by a 22% growth in its animal health business. In its international business, the US generics segment grew by 10% to ₹521 crore, while the ex-US business also saw a 10% increase to ₹299 crore.

About Alembic Pharmaceuticals

Alembic Pharmaceuticals is involved in creating, producing, and selling pharmaceutical products, including formulations and active ingredients. The company operates 3 research and development centres and 5 manufacturing plants.

Alembic Pharmaceuticals share price is trading at ₹898.00, down by ₹9.30 (1.03%) today as of 11:57 AM IST. The stock opened at ₹900.00, reached a high of ₹913.80, and a low of ₹890.00. The markecapitalisationon stands at ₹17.66K crore, with a P/E ratio of 27.31 and a dividend yield of 1.22%. The 52-week high is ₹1,303.90, and the 52-week low is ₹823.40.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Axis Mutual Fund Bounces Back with Strong Performance After 2023 Restructuring

Axis Mutual Fund, India’s eighth-largest fund house, is witnessing a turnaround in its equity fund performance after struggling for nearly 2 years. Many of its equity and hybrid schemes have now moved to the top half of the one-year return charts, with some showing improvements in longer periods as well.

Key Changes Behind the Revival

The fund house restructured its investment approach in 2023 to improve underperforming schemes. Under the leadership of CEO B Gopkumar and CIO Ashish Gupta, Axis Mutual Fund made major changes, including strengthening the fund management team and refining its investment strategy.

Diversified Investment Approach

CIO Ashish Gupta stated that while the fund house continues to follow a ‘growth’ investment style, it has broadened its stock selection. The number of stocks in its portfolio increased from 328 in 2023 to 450 by the end of 2024. The focus remains on quality and high-return stocks across various sectors, including manufacturing and business-to-business industries.

Fund Management Team Expansion

To enhance research and decision-making, the fund house hired 4 new fund managers—Jayesh Sundar, Sachin Relekar, Tejas Sheth, and Vishal Agarwal. Additionally, 6 new research analysts joined since March 2023.

Performance in Different Timeframes

While most Axis Mutual Fund schemes are now in the top two quartiles for 1-year returns, long-term performance still lags. As of December 31, 2024, only the Value Fund, Balanced Advantage Fund, and Multicap Fund are ranked in the top two quartiles for three-year returns.

Future Outlook

With the improved investment strategy and a broader market focus, Axis Mutual Fund aims to sustain its strong performance across longer periods and regain its leadership in the mutual fund industry.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Power Grid Q3 FY25 Earnings: Profit Drops 4% to ₹3,861.6 Crore, Declares ₹3.25 Dividend

Power Grid Corporation of India reported a 4.1% drop in net profit for the October-December quarter (Q3FY25), falling to ₹3,861.6 crore from ₹4,028.3 crore in the same period last year. Revenue from operations also fell 3% to ₹11,233 crore, compared to ₹11,579.8 crore a year ago.

Key Financial Metrics

  • Total income decreased to ₹11,743.06 crore from ₹11,819.70 crore in Q3FY24.
  • Total expenses were reduced to ₹6,828.65 crore, down from ₹7,076.49 crore in the previous year.
  • Power Grid’s shares fell 2.09%, closing at ₹283.90 on the BSE.

Dividend Announcement

The company’s board approved a second interim dividend of ₹3.25 per share (32.50% of paid-up equity capital) for FY25. The dividend will be paid on February 28, 2025, with the record date set for February 7, 2025.

New Investment Plan

Power Grid’s board also approved a ₹370.02 crore investment to implement a LILO (Line-In Line-Out) of 400kV Vindhyachal PS-Sasan D/C line at Hindalco Switchyard. The project is expected to be completed within 30 months from December 2026.

About Power Grid Corporation of India Limited

Power Grid Corporation of India is a government-owned company under the Ministry of Power, Government of India. It primarily focuses on transmitting large amounts of electricity across various states in India and is based in Gurugram.

Power Grid share price is currently priced at ₹279.40, showing a decline of ₹4.40 (1.55%) as of 10:35 AM IST on February 4. The stock opened at ₹281.00, reached a high of ₹282.75, and a low of ₹272.10 during the trading session. Over the past 52 weeks, the stock has hit a high of ₹366.25 and a low of ₹257.65.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Castrol India Q3 FY25 Results: Profit Rises 12% on Strong Demand

Engine oil maker Castrol India reported a 12% increase in profit for the October-December quarter, driven by strong demand for its lubricants. The company’s profit after tax rose to ₹271 crore, compared to ₹242 crore in the same period last year.

Revenue Growth on Higher Sales

Revenue for the quarter grew by 7.1% to ₹1,354 crore, supported by higher sales of lubricants for two-wheelers and commercial vehicles. Industry data showed that two-wheeler sales in India grew by 3%, while commercial vehicle sales increased by 1.2% during the quarter.

Competitive Market Strategy

Castrol India competes with state-run oil refiners like Bharat Petroleum and global players such as Shell. The company aims to expand its market share in India’s competitive lubricants industry.

Plans for Expansion in 2025

The company is focusing on making its products more accessible and affordable. Managing Director Kedar Lele said that Castrol plans to scale up its strategy in 2025, launching both premium and budget-friendly lubricants to attract more customers, especially with the growing demand for SUVs.

About Castrol India Ltd

Castrol India Ltd mainly makes and sells lubricants for automobiles and industries. It also provides related services. The company produces and sells different types of oils and fluids used in cars, motorcycles, commercial vehicles, industries, the energy sector, marine applications, and IT cooling for data centres.

Castrol India share price is currently trading at ₹187.68, marking an increase of ₹11.21 (6.35%) as of 10:24 AM IST on February 4. The stock opened at ₹189.20, reached a high of ₹193.69, and a low of ₹186.21 during the trading session. Over the past 52 weeks, the stock has reached a high of ₹284.40 and a low of ₹162.60.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Dividend Stocks in February 2025: KPIT Tech, Emami, SRF and More Trade Ex-Dividend Today

SRF Ltd, KPIT Technologies Ltd, and Emami will trade ex-dividend today, February 4, 2025. Investors needed to buy shares before this date to be eligible for the interim dividend as per the T+1 settlement rule.

SRF Dividend Details

The Board of Directors declared a 2nd interim dividend of ₹3.60 per share (36%) on January 29, 2025. The record date is February 4, 2025, and the payment will be made on or before February 27, 2025. Dividends will be credited to shareholders whose names appear in the NSDL and CDSL records as of the record date.

SRF share price is currently priced at ₹2,948.40, marking a slight increase of ₹5.70 (0.19%) as of 9:33 AM IST on February 4. The stock opened at ₹2,920.00, reached a high of ₹2,964.75, and a low of ₹2,917.90 during the trading session.

KPIT Technologies Dividend Details

The company approved an interim dividend of ₹2.50 per share (25%) on January 29, 2025. The record date for the dividend is February 4, 2025.

KPIT Technologies share price is currently priced at ₹1,446.55, reflecting a gain of ₹32.95 (2.33%) as of 9:39 AM IST on February 4. The stock opened at ₹1,420.00, reached a high of ₹1,454.00, and is currently trading near its high at ₹1,448.20.

Emami Dividend Details

Emami has announced a second interim dividend of ₹4 per share (400%) on 43.65 crore equity shares. The record date for deciding eligible shareholders is February 4, 2025.

Emami share price is currently trading at ₹599.55, showing a decline of ₹14.75 (2.40%) as of 9:41 AM IST on February 4. The stock opened at ₹605.20, reached a high of ₹609.00, and a low of ₹598.00 during the trading session.

Investors eligible for these dividends will receive the payout as per the respective company’s schedule.

Ex-Dividend and Ex-Bonus Focus

In addition to the dividend stocks, Aarti Drugs, Aurionpro Solutions, Emami, KPIT Technologies, LT Foods, Orient Electric, and SRF will be in focus today as they turn ex-dividend. Meanwhile, Redtape is expected to gain attention as it turns ex-bonus today.

  • Redtape Limited will issue a bonus in the ratio of 3:1, with the ex-date and record date also set for February 4, 2025.
  • LT Foods Limited has announced an interim dividend of ₹0.50 per share, with both the ex-date and record date set for February 4, 2025.
  • Orient Electric Limited has announced an interim dividend of ₹0.75 per share, with the ex-date and record date set for February 4, 2025.
  • Sundaram Finance Holdings Limited has declared an interim dividend of ₹3.7 per share, with the ex-date and record date on February 4, 2025.
  • Aurionpro Solutions Limited will issue an interim dividend of ₹1 per share, with the ex-date and record date also on February 4, 2025.
  • Aarti Drugs Limited has announced an interim dividend of ₹1 per share, with the ex-date and record date on February 4, 2025.

Ex-Date and Record Date Explained

The ex-date is the day a stock begins trading without the dividend entitlement, while the record date is when the company finalises its list of shareholders eligible for the dividend. Investors must hold the stock before the ex-date to qualify for the dividend.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Best Oil and Gas Stocks in February 2025: ONGC, HPCL and More – Based on 5-Yr CAGR

According to the IEA (International Energy Agency) in the India Energy Outlook 2021, India’s primary energy demand is expected to nearly double, reaching 1,123 million tonnes of oil equivalent, as the India’s GDP is projected to grow to US$ 8.6 trillion by 2040. In the past decade, India’s refining capacity has grown from 215.1 million metric tons per annum (MMTPA) to 256.8 MMTPA. This is expected to rise further to 309.5 MMTPA by 2028.

India is anticipated to be one of the largest contributors to the global growth in non-OECD petroleum consumption. The consumption of petroleum products in the country has improved from 158.4 MMT in the fiscal year 2013-14 to 234.3 MMT in 2023-24.

With India’s growing demand in the oil and gas sector, let’s explore the top oil and gas stocks to keep an eye on in January 2025.

Best Oil and Gas Stocks in February 2025 – 5yr CAGR Basis

Name Market Cap (in ₹ crore) ↓5Y CAGR  (%) 1Y Return (%) Net Profit Margin (%)
Oil and Natural Gas Corporation Ltd 3,30,370.71 19.24 6.04 8.12
Hindustan Petroleum Corp Ltd 76,229.24 18.25 15.37 3.66
Gail (India) Ltd 1,16,457.81 17.14 1.97 7.28
Petronet LNG Ltd 47,430.00 3.48 19.01 6.85
Bharat Petroleum Corporation Ltd 1,13,278.38 2.71 2.7 5.95

Note: The best oil and gas stocks listed here are as of February 03, 2025. The stocks are sorted based on their 5Y CAGR. 

Overview of the Best Oil and Gas Stocks

1. Oil and Natural Gas Corporation Limited

ONGC is a government-owned company and India’s largest oil and gas explorer and producer. It contributes about 70% of the country’s crude oil production and around 84% of its natural gas output.

In Q3 FY24, ONGC reported a revenue of ₹33,716.80 crore, slightly lower than ₹33,880.88 crore in Q2 FY24. Net profit stood at ₹8,239.92 crore, down from ₹11,984.02 crore in the previous quarter. 

Key metrics:

  • Earning per Share (EPS): ₹31.03
  • Return On Equity (ROE): 11.94%

2. Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation Limited (HPCL) is an Indian government-owned company in the petroleum and natural gas sector. Headquartered in Mumbai, it operates under the Ministry of Petroleum and Natural Gas. HPCL is a subsidiary of ONGC, which is owned by the Government of India.

In Q3 FY24, Hindustan Petroleum Corporation Limited (HPCL) reported revenue of ₹1,18,936.19 crore, up from ₹1,08,216.38 crore in the previous quarter. The company’s net profit surged to ₹3,022.90 crore in December 2024, compared to ₹631.18 crore in September 2024. 

Key metrics:

  • EPS: ₹32.20
  • ROE: 17.04%

3. GAIL Limited

GAIL Limited is a government-owned energy company in India. It mainly focuses on the trade, transmission, and distribution of natural gas. GAIL is also involved in exploring and producing solar and wind power, as well as providing telecom, telemetry services, and electricity generation.

In December 2024, GAIL Limited reported a revenue of ₹34,957.76 crore and a net profit of ₹3,867.38 crore. For September 2024, the revenue was ₹32,930.72 crore, with a net profit of ₹2,671.93 crore.

Key metrics:

  • EPS: ₹11.58
  • ROE: 10.80%

4. Petronet LNG Ltd

Petronet LNG Ltd was established in 1998 as a joint venture between GAIL, Indian Oil, Bharat Petroleum, and ONGC, each holding a 12.5% stake, to build, own, and operate liquefied natural gas (LNG) import and regasification terminals in India.

In the quarter ending December 2024, Petronet LNG Ltd reported a revenue of ₹12,226.86 crore and a net profit of ₹866.99 crore. For the quarter ending September 2024, the revenue was ₹13,021.82 crore, with a net profit of ₹847.62 crore.

Key metrics:

  • EPS: ₹23.96
  • ROE: 19.43%

5. Bharat Petroleum Corporation Limited

Bharat Petroleum Corporation Limited is a state-owned oil and gas company based in Mumbai, India. It is the second-largest government-owned oil producer in the country, with its operations managed by the Ministry of Petroleum and Natural Gas. The company runs 3 refineries in Bina, Kochi, and Mumbai.

In the quarter ending December 2024, Bharat Petroleum Corporation reported a revenue of ₹1,27,520.50 crore and a net profit of ₹4,649.20 crore. This compares to a revenue of ₹1,17,951.69 crore and a net profit of ₹2,397.23 crore in the previous quarter.

Key metrics:

  • EPS: ₹32.93
  • ROE: 18.74%

 

Best Oil and Gas Stocks in India in February 2025 – Market Cap Basis

Name ↓Market Cap (in ₹ crore) 5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Oil and Natural Gas Corporation Ltd 3,30,370.71 19.24 6.04 8.12
Gail (India) Ltd 1,16,457.81 17.14 1.97 7.28
Bharat Petroleum Corporation Ltd 1,13,278.38 2.71 2.7 5.95
Hindustan Petroleum Corp Ltd 76,229.24 18.25 15.37 3.66
Petronet LNG Ltd 47,430.00 3.48 19.01 6.85

Note: The best oil and gas stocks listed here are as of February 03, 2025. The stocks are sorted based on their market cap. 

Best Oil and Gas Stocks in India in February 2025 – Net Profit Margin Basis

Name Market Cap (in ₹ crore) 5Y CAGR (%) 1Y Return (%) ↓Net Profit Margin (%)
Oil and Natural Gas Corporation Ltd 3,30,370.71 19.24 6.04 8.12
Gail (India) Ltd 1,16,457.81 17.14 1.97 7.28
Petronet LNG Ltd 47,430.00 3.48 19.01 6.85
Bharat Petroleum Corporation Ltd 1,13,278.38 2.71 2.7 5.95
Hindustan Petroleum Corp Ltd 76,229.24 18.25 15.37 3.66

Note: The best oil and gas stocks listed here are as of February 03, 2025. The stocks are sorted based on their net profit margin. 

Oil and Gas Industry in India Outlook

India’s rapid economic growth is driving an increased demand for oil, especially for production and transportation. Crude oil consumption is expected to grow at a compound annual growth rate (CAGR) of 4.59%, reaching 500 million tonnes by FY40, up from 223 million tonnes in FY23. 

In terms of barrels, oil consumption in India is predicted to rise from 4.05 million barrels per day (MBPD) in FY22 to 7.2 MBPD by 2030 and 9.2 MBPD by 2050. Diesel demand in India is expected to double to 163 million tonnes by 2029-30, with diesel and petrol together making up 58% of India’s oil demand by 2045. Given strong economic growth and increasing urbanisation, demand for oil is expected to remain high.

Natural gas consumption is forecast to grow at a CAGR of 12.2%, reaching 550 million cubic meters per day (MCMPD) by 2030, up from 174 MCMPD in 2021.

Indian refiners are set to add 56 million tonnes per annum (MTPA) by 2028, bringing the total domestic capacity to 310 MTPA. India also plans to double its oil refining capacity to 450-500 million tonnes by 2030.

Factors to Consider Before Investing in Oil and Gas Stocks in India

  • Market Volatility and Price Variations

Fluctuations heavily influence oil and gas stocks in global oil prices. Changes in supply and demand or geopolitical events can have a major impact on a company’s profitability. It is important to monitor oil price trends and how companies manage these fluctuations.

  • Government Policies and Regulations

Policies like subsidies, taxes, and environmental rules can impact the profitability of oil and gas companies. Investors should understand how shifts in government regulations could influence a company’s operations and costs.

  • Company’s Financial Health

Evaluating a company’s financial health, including revenue growth, profit margins, and debt levels, is crucial. Companies with low debt and stable earnings are better positioned to weather market volatility.

  • Operational Efficiency and Infrastructure

Operational efficiency and robust infrastructure are essential for profitability. Companies with well-managed production and distribution networks, as well as a focus on technological advancements, are likely to handle costs effectively and seize growth opportunities.

Conclusion

Investing in oil and gas stocks requires careful assessment of a company’s financial stability, market standing, growth potential, and the risks associated with fluctuating energy prices and regulatory changes. Aligning these factors with an overall investment strategy helps ensure a well-informed approach to the ever-changing oil and gas industry. Make sure to seek advice from a financial expert to meet specific investment objectives and manage risk tolerance effectively.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Closing Bell: Sensex Dips 319pts on US Tariff News; Nifty at 23,361; Smallcaps Struggle

On February 3, 2025, Indian equity markets faced a decline as investors grew cautious following US President Donald Trump’s decision to impose tariffs on Canada, Mexico, and China. Trump announced a 25% tariff on Canada and Mexico and a 10% tariff on China, citing concerns about illegal immigration and the drug trade.

Sensex and Nifty End Lower

The BSE Sensex dropped by 319.22 points, or 0.41%, closing at 77,186.74. The index traded between 77,260.37 and 79,756.09 during the day. The NSE Nifty50 also fell by 121.10 points, or 0.52%, finishing at 23,361.05. The Nifty50 hit a high of 23,381.60 and a low of 23,222 during the session.

Top Gainers and Losers

35 of the 50 Nifty stocks ended in the red, led by Larsen & Toubro, Tata Consumer, Hero MotoCorp, Coal India, and Bharat Electronics, which saw losses of up to 4.67%. On the other hand, 13 Nifty stocks, including Bajaj Finance, Shriram Finance, Mahindra & Mahindra, Wipro, and Bajaj Finserv, gained up to 5.12%.

Smallcap stocks were the biggest losers in the broader market, with the Nifty Smallcap100 index dropping by 2.13%. The Nifty Midcap 100 index also fell by 0.93%.

Sectoral Performance

Among sectors, Nifty Oil & Gas, FMCG, and PSU Bank indices saw significant losses, down by 2.22%, 1.67%, and 1.60%, respectively. On the positive side, sectors like Nifty IT, Auto, Pharma, Healthcare, and Consumer Durables posted gains of up to 0.68%.

Oil Prices

As of February 03, 2025, at 04:02 PM, Brent Crude was trading at $76.76, up by 1.44%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Shakti Pumps Share Price from Day’s Low on ₹1,300 Crore Solar Module Deal

As of February 3, 2025, Shakti Pumps (India) share price is trading at ₹924, up 1.38% for the day. The stock opened at ₹890, hit a high of ₹924, and a low of ₹865.85. The company has a market capitalisation of ₹11,090 crore, a P/E ratio of 28.12, and a dividend yield of 0.072%. 

Over the past 6 months, the stock has risen 13.75%, while in the past year, it has surged 278.10%. Over the last 5 years, Shakti Pumps has delivered an impressive return of 1,922.32%. Its 52-week high stands at ₹1,387, and the 52-week low is ₹191.50.

Reason for the Surge

The stock gained momentum after the company announced an additional tie-up for supplying DCR cell-based solar modules for FY 2025-26.

Shakti Pumps already has existing partnerships with:

  • Mundra Solar PV Limited (Adani)
  • Premier Energies Ltd.

Now, it has secured an additional ₹1,300 crore supply deal with ReNew Photovoltaic Private Limited. This partnership is expected to boost the company’s growth further.

Shakti Pumps Q3 FY25 Results

Water pump manufacturer Shakti Pumps (India) Ltd reported a 130.09% increase in net profit, reaching ₹104 crore in Q3 FY25, compared to ₹45.2 crore in the same period last year.

Revenue from operations rose 31% to ₹648.8 crore, up from ₹495.6 crore in Q3 FY24. EBITDA surged 117.46% to ₹154.4 crore from ₹71 crore last year. The EBITDA margin improved to 23.8%, compared to 14.3% in Q3 FY24.

About Shakti Pumps

The company also produces controllers, mechanical seals, and other key components used in various sectors like irrigation, horticulture, domestic, commercial, and industrial applications. Founded in 1982 by the Patidar family in Rau (Indore), Shakti Pumps has grown into a global brand, exporting to over 120 countries.

The company’s manufacturing facility in Pithampur, Madhya Pradesh, has an annual capacity of 5 lakh pumps and follows strict national and international quality standards.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.