Study of Nifty Oil and Gas Sector: Fundamental Approach (KEY IJP************236)

• Nirali Choudhari

Abstract

This report summarizes the practical experience gained during a two-month internship at Finoability Pvt. Ltd., focusing on Fundamental analysis of Nifty Oil and Gas sector. The goal is to identify and evaluate stocks based on their value and growth potential, ultimately forming a high-performing investment portfolio. Using fundamental Analysis, I conducted a thorough valuation to identify stocks that are either undervalued or exhibit strong earnings growth. Specifically, stocks were classified into two categories: Value Picks: These are stocks that are undervalued and have demonstrated year-over-year (YOY) growth in earnings per share (EPS). Growth Picks: These stocks, while overvalued, possess a positive PriceEarnings to Growth (PEG) ratio of 1 or less, indicating potential for significant future growth. Using key financial ratios pertinent to the oil and gas industry, the value and growth picked stocks were ranked. Based on those rankings, funds were allocated accordingly to optimise the portfolio. A portfolio comprising selected oil and gas sector stocks is constructed, with the Net Asset Value (NAV) calculated for performance evaluation. The portfolios performance is compared against the NSE index daily to determine if it outperforms this benchmark. This analysis is valuable for investors seeking opportunities in oil and gas sector companies.