Two Maharatna PSUs stocks on high trail with over 5% surge, amid Q2 Results, should invest or not

Two large Public sector companies of Maharatna status have declared their quarterly results for September. The stocks prices had shown a bounce back after a couple of week’s losses and down-trail. These are Oil India Ltd and Gail Ltd.  GAIL India Ltd contribute interests in the exploration and production of solar and wind power, telecom and telemetry services (GAILTEL), and electricity generation.

Gail India Ltd-

The share price of the company is trading over 5.82% with a 52-week high at Rs 209.99 and 52 week low at Rs 201.00. The EPS is missed by -1.93% as recorded. As of 2022, the Bonus issue stood at 1:2, while the last interim dividend was Rs 5.50 per share for the March quarter. The market capitalization stood at Rs 1.37 lakh crore and dividend yield stood at 2.65%.

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Financial Results-

Government-backed natural gas supplier Gail reported a 10.2% rise in consolidated net profit attributable to equity holders of the parent for the second quarter (July-September) of 2024-25 (FY25). Net profit rose to Rs 2,693.5 crore, up from Rs 2,444.05 crore in the year-ago period. Sequentially, Gail's net profit fell 15.37% from Rs 3,182.9 crore.

The second-largest revenue segment, natural gas transmission, saw profit rise 8% to Rs 1,402.8 crore, up from Rs 1,294.42 crore in the same quarter of the previous year. Meanwhile, profit from city gas distribution rose 1.2 times to Rs 205.03 crore, up from Rs 93.07 crore in Q2 FY24, and profit in the liquefied petroleum gas (LPG) and liquid hydrocarbon business rose to Rs 248.9 crore, compared to a loss of Rs 16.9 crore earlier.

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Oil India Ltd-

The shares of this Maharatna company are trading above 6.1% at Rs 525.85. The 52-week high is at Rs 527.00 and the 52-week low is at Rs 495.30, with a dividend yield of 2.00%. The market capitalization is standing at Rs 85.54T crore. In the September quarter, the EPS was missed by -39.89%.

Oil India has also declared an interim dividend of 30%, equivalent to Rs 3 per share at a face value of Rs 10, with a record date set for November 15. The stock has surged 96% year-to-date and 145% over the past year.

Financial Results-

State-owned PSU has reported a 25% rise in consolidated net profit on a quarterly basis, reaching Rs 1,834 crore for the July-September 2024 period, compared to Rs 1,466.8 crore in the previous quarter. Additionally, EBITDA declined by 11.5% to Rs 2,183.2 crore from Rs 2,466 crore quarter-on-quarter, with margins shrinking from 46.3% to 41.6%.

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