The energy sector is one of India’s eight key sectors, playing a vital role in influencing decisions across other critical areas of the economy. India’s economic growth is closely linked to its energy demands, and as such, the need for oil and gas is expected to grow, making the sector a highly attractive investment opportunity.
India’s primary energy demand is forecasted to nearly double to 1,123 million tonnes of oil equivalent, driven by the anticipated rise in GDP to US$ 8.6 trillion by 2040. Over the past decade, India’s refining capacity has increased from 215.1 million Metric Tons Per Annum (MMTPA) to 256.8 MMTPA, with projections indicating a further rise to 309.5 MMTPA by 2028. In this blog, let’s explore the best energy stocks for March 2025 based on 5Y CAGR
| Company Name | Market Cap (In ₹ Crore) | 5Y CAGR (%) |
|---|---|---|
| Oil India Ltd | 59,517.58 | 36.62 |
| Chennai Petroleum Corporation Ltd | 6,995.86 | 34.87 |
| Mangalore Refinery and Petrochemicals Limited | 19,364.46 | 22.73 |
| Oil and Natural Gas Corporation Ltd | 2,90,604.45 | 19.63 |
| Hindustan Petroleum Corp Ltd | 65,324.15 | 17.40 |
Note: The stocks have been sorted based on 5Y CAGR and as of January 01, 2025, and market capitalisation of over ₹5,000 Crore
Oil India Ltd is involved in exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. The company has successfully increased its crude oil production, with a 1.4% rise in the quarter ending 31st December 2024, reaching 0.868 MMT compared to 0.856 MMT in the same quarter of 2023. Additionally, crude oil production grew by 4.1% in the nine months ending 31st December 2024, totalling 2.614 MMT, up from 2.511 MMT in the corresponding period of 2023.
Key Metrics:
Chennai Petroleum Corporation Limited is engaged in refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives. During Q3FY25, the company’s revenue decreased by 25.56% compared to the same period last year, reaching ₹12,940.07 crore. The net profit dropped by 94.31% compared to the same period last year, totalling ₹20.78 Cr in Q3 2024-2025.
Key Metrics:
Mangalore Refinery and Petrochemicals Ltd is mainly involved in the manufacturing, purchase, and sale of fertilisers. Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a 21% decline in its third-quarter net profit, as a drop in revenues offset the gains from higher refinery margins.
The company’s consolidated net profit for Q3FY25 was ₹309 crore, compared to ₹392 crore during the same period last year, as stated in a company release. Revenue from operations decreased to ₹25,601 crore from ₹28,364 crore in the third quarter of the previous fiscal year, primarily due to lower oil prices.
Key Metrics:
ONGC is the largest crude oil and natural gas Company in India, contributing around 71% to Indian domestic production. The company has made significant strides in expanding its global presence and resources. It acquired an additional 0.615% participating interest (PI) in ACG, Azerbaijan, and 0.737% PI in the BTC pipeline. Furthermore, an addendum to the existing ACG PSA was signed, which enables the exploration, development, and production of Non-Associated Natural Gas (NAG) reservoirs in the field.
Key Metrics:
Hindustan Petroleum Corporation Ltd is primarily involved in refining crude oil and marketing petroleum products, production of hydrocarbons as well as providing services for management of E&P Blocks. For FY25, the company is planning to incur a CAPEX of ₹ 12,000 crore – ₹ 13,000 crore.
Out of which, the company has already spent CAPEX of ₹6,588 crore. HPCL is dedicated to utilising digital technologies across all areas of our business to drive continuous innovation, enhance operational excellence, and develop new business models, ultimately delivering a superior experience and value to all stakeholders.
Key Metrics:
Investing in energy stocks presents substantial potential for long-term growth, particularly as the world shifts toward more sustainable energy sources. The energy sector plays a crucial role in the global economy, with ongoing demand for oil, gas, and renewables creating numerous opportunities within the industry. However, like any investment, energy stocks carry certain risks, including market fluctuations, regulatory changes, and environmental factors.
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 securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 3, 2025, 1:19 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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