A Financial Performance Analysis of Indian Oil Exploration & Drilling Sector

Abstract

Purpose: The study of financial performance analysis in the Indian oil and drilling sector serves a critical purpose in providing stakeholders with insights into the economic health, operational efficiency, and strategic positioning of companies within this industry. By analysing key financial metrics such as profitability, liquidity and valuation ratios, stakeholders including investors, policymakers, and industry participants can assess the sector's overall stability, growth potential, and risk exposure. Moreover, such analysis facilitates informed decision-making processes related to investment allocation, risk management strategies, policy formulation, and strategic planning. Understanding the financial performance of companies within the Indian oil and drilling sector is imperative for stakeholders to navigate the complexities of this dynamic industry, capitalize on opportunities, and mitigate potential challenges effectively. Oil Exploration and Drilling companies listed on the Bombay Stock Exchange were selected for the study.

Design/Methodology/Approach: Five BSE listed Oil Exploration and Drilling companies are considered for the present research work and analysed by using profitability, liquidity and valuation ratios.

Findings/Result: Selected Oil Exploration & Drilling sector companies listed on the BSE were the subjects of this study's analysis of their Profitability, Liquidity & Valuation ratios. The websites of Money Control and the BSE provided the majority of the time series data used in the study on three different ratios, Profitability, Liquidity & Valuation. Five years, from 2019 to 2020 to 2022–2023 are included in the analysis of Profitability, Liquidity & Valuation. It is recommended that investors can invest their money into ONGC, Reliance, and Oil India, Petronet LNG LTD. in order to maximise their investments.

Originality/Value: This study employs the financial analysis method to analyze profitability, liquidity and valuation of the selected Oil Exploration & Drilling Sector.

Paper Type: Empirical research