2 Top Oil and Gas Stocks to Watch for Future Multibagger Potential: ONGC and Oil India
- October 15, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
ONGC Rs 224.64. Oil India Rs 445.40. Market caps from Rs 72,750 crore to Rs 2.83 lakh crore. Data as of 15 Oct 2026.
Quick Answer
ONGC and Oil India are the 2 picks in this oil and gas stocks watchlist, with market caps between Rs 72,750 crore and Rs 2.83 lakh crore. ONGC stands out for the lowest PE of the group at 6.32, while Oil India offers the biggest five-year price gain at 183.64%. PE ratios run from 6.32 to 7.63, so compare each one with its industry PE before investing. All figures are as of 15 October 2026.
Oil and gas stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. ONGC and Oil India meet that test, with market caps from Rs 72,750 crore to Rs 2.83 lakh crore and ONGC offering the lowest PE of the group at 6.32. India imports most of the crude it uses, so domestic producers that raise output sit at the centre of the energy security story.
This list covers upstream crude oil and natural gas producers with complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening oil and gas stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 15 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Oil and Gas Stocks and Why Do They Attract Multibagger Interest?
Oil and gas stocks in the upstream segment find, drill and produce crude oil and natural gas, then sell it to refiners and gas buyers. Their revenue follows the price of crude and the volume they produce, so they react quickly to changes in global oil prices.
The long-term case comes from new fields, deepwater and overseas assets, higher gas output and a steady dividend record. Producers with large cash flows can fund exploration from their own earnings, a quality investors check first in oil and gas stocks.
Oil and Gas Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are as of 15 October 2026, mid-session. ONGC has the lowest PE of the group at 6.32, while Oil India posts the highest return on equity at 11.41%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Oil and Natural Gas Corporation | 224.64 | 2,83,245 | 6.32 | 7.16 | 11.14% | 0.47 | 218.53 to 307.50 |
| Oil India | 445.40 | 72,750 | 7.63 | 7.16 | 11.41% | 0.65 | 395.60 to 531.00 |
ONGC: Profit Compounding at 0.25% a Year
ONGC is India’s largest crude oil and natural gas producer, owned by the Government of India, with an overseas arm in ONGC Videsh. It reported FY26 revenue of Rs 6,21,019.28 crore and net profit of Rs 49,793.10 crore, up 29.91%. Revenue has compounded at 5.64% a year since FY22. Operating margin was 17.82% in FY26. The debt-to-equity ratio is 0.47.
Revenue for the June 2026 quarter rose 25.48% to Rs 2,07,775.93 crore, at an operating margin of 9.44%. Foreign investors raised their holding from 7.09% in June 2025 to 8.01% in June 2026. The stock trades at a PE of 6.32 against an industry PE of 7.16, below the sector average. The dividend yield is 3.22%.
Oil India: Quarterly Profit Up 96.77%
Oil India is a government-owned oil and gas exploration and production company with operations in Assam, Rajasthan and overseas blocks. It reported FY26 revenue of Rs 35,877.28 crore, up 4.97% year on year, and net profit of Rs 7,550.67 crore, up 7.26%. Revenue has compounded at 7.32% a year since FY22. Operating margin was 36.43% in FY26.
The stock trades at a PE of 7.63 against an industry PE of 7.16. The dividend yield is 2.57%. In the June 2026 quarter, revenue rose 46.98% to Rs 13,236.10 crore and net profit grew 96.77% to Rs 4,026.83 crore. The share price has gained 183.64% over five years. Domestic institutions raised their holding from 18.41% in June 2025 to 20.14% in June 2026.
Oil and Gas Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these oil and gas stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| ONGC | 6,21,019.28 | 49,793.10 | 5.64% | 0.25% | 25.48% | 9.44% |
| Oil India | 35,877.28 | 7,550.67 | 7.32% | 2.96% | 46.98% | 49.06% |
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Institutional Holding in ONGC and Oil India
Institutional holding shows who is backing these crude oil shares alongside the promoter. The table uses the latest reported quarter for each. Oil India has the deepest institutional backing, with FII and DII together holding 27.42% as of June 2026. Domestic institutions increased their holding over the past year in Oil India (from 18.41% to 20.14%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| ONGC | 58.89% | 8.01% | 19.31% | 13.79% | June 2026 |
| Oil India | 56.66% | 7.28% | 20.14% | 15.93% | June 2026 |
Risks to Weigh in Oil and Gas Stocks
Being careful with oil and gas stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Earnings move with international crude prices and the rupee, so profits can swing between quarters.
- Government levies on crude and gas pricing rules can change what the producer actually keeps.
- Valuation: Oil India trades at a PE of 7.63 against an industry PE of 7.16, so earnings need to keep growing to support the price.
- Concentration: Holding both names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Oil and Gas Stocks
Picking from oil and gas stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (7.16) and ask whether the growth rate justifies any gap.
- Track crude realisation, production volumes and the dividend payout, because these drive both earnings and shareholder returns.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among oil and gas stocks, ONGC stands out for the lowest PE of the group at 6.32 and Oil India for the biggest five-year price gain at 183.64%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing oil and gas stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Oil and Gas Stocks to Watch
Which are the best oil and gas stocks to watch for multibagger potential?
Ans. ONGC and Oil India are the 2 names this list highlights, with market caps of Rs 2,83,245 crore and Rs 72,750 crore respectively. ONGC is notable for the lowest PE of the group at 6.32. Oil India stands out for the biggest five-year price gain at 183.64%. These are watchlist names for oil and gas stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Oil India a good stock for long-term investors?
Ans. Oil India has a return on equity of 11.41%, a PE of 7.63 against an industry PE of 7.16 and a market cap of Rs 72,750 crore. FY26 revenue rose 4.97%, and June 2026 quarter net profit grew 96.77%. Long-term returns in oil and gas stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can ONGC become a multibagger from here?
Ans. ONGC has a market cap of Rs 2,83,245 crore. A multibagger outcome in crude oil shares requires earnings to keep growing faster than the market for several years. June 2026 quarter revenue grew 25.48%. At a PE of 6.32 against an industry PE of 7.16, valuation should be checked against that growth before investing.
What is the market cap of ONGC and Oil India?
Ans. As of 15 October 2026, ONGC has a market cap of Rs 2,83,245 crore and Oil India has a market cap of Rs 72,750 crore. ONGC is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on oil and gas stocks.
What are the risks of investing in oil and gas stocks?
Ans. The main risks are crude price swings, policy levies and project timelines. Producers earn more when crude is firm and less when it eases, and government taxes or pricing rules can change net realisation. Large cash flows and a record of regular dividends help cushion these swings. Oil India trades at a PE of 7.63 against an industry PE of 7.16, so earnings growth needs to hold up.
Is ONGC trading below its industry PE?
Ans. ONGC trades at a PE of 6.32 against an industry PE of 7.16. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (June 2026 quarter revenue grew 25.48%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in ONGC and Oil India?
Ans. As of the latest reported quarter, FII and DII together hold 27.32% of ONGC (8.01% and 19.31%) and 27.42% of Oil India (7.28% and 20.14%). Rising institutional holding is a useful signal in oil and gas stocks, though it should be read with earnings trends rather than on its own.
