PSU stock to buy: Shares of Gujarat Energy Limited soared during Monday’s intraday trading session after the announcement of second quarter results for the financial year 2026-27. The company reported 21.94% year-on-year growth during the second quarter of financial year 2026-27.
Gujarat Energy share price surged nearly 2% to touch intraday high levels on Monday, and has delivered 5.65% return over the past one week.
The company’s net profit and revenue were in-line with expectations, according to Motilal Oswal Financial Services Limited (MOFSL). Its city gas distribution (CGD) volumes were 12% above estimates. Additionally, CNG volume was also above estimates. The brokerage remained bullish on the stock highlighting the company’s LNG contracts, robust city gas distribution growth, and profitable fertiliser contracts, and strong balance sheets.
Motilal Oswal maintained its ‘Buy’ rating with a target price of ₹325 per share. “The stock currently trades at 9.3x FY28 P/E. We reiterate our BUY rating on the stock with a SoTP based TP of INR325/share.”
The company reported a net profit of ₹639.27 crore during the second quarter of financial year 2026-27, 21.9% higher than ₹524.72 crore reported in the year ago period. The company’s net profit revenue from operations increased to ₹9,826.08 crore during the quarter under review against ₹6,164.86 crore reported in the year ago period.