Industry Profile: If any economy is growing, it needs fuel for that growth, just like it needs steel and Cement for infrastructure. India’s oil demand is expected to grow at a CAGR of 3.6 percent to 458 Million Tonnes of Oil Equivalent (MTOE) by 2040, while energy demand will more than double by 2040 as the economy will grow to more than five times its current size, as stated by Mr. Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas. Gas production will likely touch 90 Billion Cubic Metres (BCM) by 2040, subject to the current formula that determines the price paid to domestic producers, while demand for natural gas will grow at a CAGR of 4.6 percent to touch 149 MTOE. India is the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South Korea, and China, accounting for 5.8 percent of the total global trade. Domestic LNG demand is expected to grow at a CAGR of 16.89 percent to 306.54 MMSCMD by 2021 from 64 MMSCMD in 2015. Investments in India’s oil and gas sector will likely touch Rs 2.5-3 trillion (US$ 37.28-44.73 billion) over the next few years, which will help raise the share of gas in the country’s primary energy mix to 15 percent by 2030, as per British multinational oil and gas company BP Group. State-owned Oil and Natural Gas Corporation (ONGC) dominates the upstream segment (exploration and production), producing around 22.37 MT of crude oil, approximately 60.5 percent of the country’s 36.95 MT oil output, as of March 2016. It has launched a start-up fund of Rs 100 crore (US$ 14.91 million) in its Diamond Jubilee year to encourage and promote new ideas related to the oil and gas sector, thereby giving a fillip to Government’s Startup India initiatives. ONGC Videsh Ltd (OVL), the foreign arm of state-owned petroleum explorer Oil and Natural Gas Corporation (ONGC), has planned to acquire up to 15 percent stake in CSJC Vankorneft, which owns Russia’s second-largest oil and gas field.
Company profile: The company is India’s most extensive city gas distribution and one of the most prominent players supplying Natural gas to industrial areas, mainly in Gujarat. The company operates as the primary natural gas distributor in the Industrial, commercial, domestic, and automobile (CNG) segments. As of 2017, it has the most extensive customer base in the gas distribution sector in India: 10,80,000 domestic households, 2,835 industrial customers, 11,900 commercial and non-commercial customers, and 233 CNG stations selling more than 7,65,000 kg of CNG per day serving more than 1,60,000 vehicles per day. It has achieved the highest total daily gas sales volume in India. Their pipeline network is spread over 2700 Km.
Shareholding pattern: BSE Data
Financials and ratios : [table id=123 /]
Prospects: Being one of the leaders in the industry, the company enjoys good cash flow. The industry is a growth industry. The company wants good infrastructure, preventing others from entering this market. It is like Moat. Recent results are also good.
