3 Oil & Natural Gas Stocks With Highest Return Over 1 Year- Should You Buy?

Investors, whether seasoned or inexperienced, are battling to get their act together in these market conditions. However, investment based on the historical 1 Year return data could be a little help to know which stock has the potential to offer you a return on your investment. The company's ability to generate returns on the investment made by its shareholders is measured by its return on equity. A strong and good return over 1 year investment signifies the stock has performed well in past and has the potential to give good return in near future, however, investors should note the equity investment are market-linked and doesn't guarantee returns. Here we have picked top 3 Oil & Natural Gas stocks that has given highest positive return over the 1 year investment on equity.

Oil India Ltd

Oil India Limited (OIL) is a Navratna PSU, a fully integrated Exploration & Production (E&P) company in the upstream sector and is the second-largest national oil and gas company of India as measured by total proved plus probable oil and natural gas reserves and production in India. 

 
The company has spent 3.13% of its operating revenues on interest expenses and 6.84% on employee costs in the year ending 31 Mar 2022. The company delivered an ROE of 18.39% in the year ending 31 March 2022 outperforming its 5-year average of 14.64%. The TTM P/E ratio is 5.49, whereas the sector P/E ratio is 5.69. Stock is trading at 1.01 times its book value. The company has been maintaining a healthy dividend payout. 

The current market price of the Oil India is Rs 284.65/share, today it tanked 5.08%. According to the data on NSE, the stock of the company has performed well over the last 5 years as it generated continuous positive returns. It generated 2.17% in 1 week, 29.26% in 1 month and 20.84% in 3 months, a whopping 100.32% in 1 year, 61.03% in 3 years and 45.04% in 5 years, respectively.

Hindustan Oil Exploration Company Ltd (HOEC)

HOEC was incorporated in 1983, it is a Small Cap company having a market cap of Rs 2,772.48 crore. HOEC was the first private company in India to enter the field of oil and gas exploration. HOEC is an Operator of 3 blocks in the onshore Cambay basin, Gujarat currently under the production of crude oil and gas for the last several years. 

 
The HOEC has posted a PAT loss of Rs 27.21 crore on 31 Mar 2022 quarter after 3 consecutive quarters of profits in total income. The company delivered an ROE of 18.39% in the year ending 31 March 2022. The TTM P/E Ratio is 128.61, while the sector P/E ratio is 5.69. It is expected that the company to give a good quarter. 

 
The current market price (CMP) of the company is Rs 194.20/share, which tanked by nearly 7.35%. The previous week the stock didn't perform well as it gave a 0.21% negative return. However, it also gave a positive return of 13.24% over the last 1 month. In 3 months of investment, it gave a 13.34% of negative return. Whereas, in 6 months, it gave another positive return of 5.74%. In the last 1 year and 5 years, it gave 80.74% and 169.72% positive returns, respectively. 

Oil & Natural Gas Corp Ltd (ONGC)

ONGC is a Maharatna company, the largest crude oil and natural gas company in India, contributing around 71 per cent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL and MRPL to produce petroleum products like Petrol, Diesel, Naphtha, Kerosene, and Cooking Gas LPG. 

ONGC's annual revenue growth of 72.09% surpassed its three-year compound annual growth rate (CAGR) of 7.79%. In the fiscal year ended March 31, 2022, the company spent 1.07% of its operational revenues on interest charges and 1.29% on labour costs. In the fiscal year ended March 31, 2022, the company generated an ROE of 17.54%, surpassing its five-year average of 11.3%.

The share price of the company today closed at Rs 159.55/share after a decline of 2.98%. Over the last 1 year performed well except for last 3 months. It has given a positive return of 29.14% in the last 1 year, 3.64% last week and 3.91% in the last 1 month. On negative returns, it has given 9.19% of negative returns in 3 months. The stock didn't perform well on long-term investment ash it gave a negative return of 5.56% and 5.65% in 3 and 5 years, respectively.

Disclaimer

The stock has been sourced from NSE. Greynium Information Technologies and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.