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The ongoing Q1 FY24 earnings season has almost come to an end. Generally, such times are good to take a look at your portfolio for rebalancing based on the recent numbers from your favorite companies.
In that vein, here are 2 stocks from the blue-chip index, that are trading at the cheapest valuation among all 50 constituents, w.r.t. their Q1 earnings.
Bharat Petroleum Corporation Limited
Bharat Petroleum Corp. Ltd. (NS:) is an oil refining and marketing company with a market capitalization of INR 78,420 crore. After struggling in the first half of FY23, these companies started making a comeback and posted stellar earnings in Q1 FY24. Net revenue took a minor hit of 6.3% to INR 1,14,023.11 crore, however, the net income soared to INR 10,644.3 crore, compared to a loss of INR 6,147.94 crore in the same period last year.
The last time BPCL scored a quarterly profit of over INR 10,000 crore was way back in the March 2021 quarter. Due to such a good bottom line and a minor 3.3% return in the last 12 months, the stock has come down to a TTM P/E ratio of 4.14, the cheapest among all Nifty 50 companies.
Coal India Limited
Coal India Ltd (NS:) is the largest coal producer in the country with a total of 322 mines and has a market capitalization of INR 1,44,762 crore. The company reported a modest increase of 3.9% (YoY) in Q1 FY24 revenue to INR 37,521.03 crore while the net income took a hit of 9.7% to INR 7,971.04 crore in the same period.
However, just like BPCL, this stock also didn’t move much in the last 12 months, delivering a return of 5.3%, which is what has kept its valuation attractive, with the current TTM P/E ratio of 5.3. This is also a dividend machine and is the favorite among dividend investors in the large-cap space. The current yield of 10.32% makes it the highest dividend-paying company in the Nifty 50 index.
Read More: Falling Wedge: Stock Zooms 6% from Bottom, Attempts Reversal!
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