Last week, the 100 index surged to an all-time high of 39,039, despite a lackluster performance of the frontline large-cap shares. Clearly, investors are inclined towards small and mid-cap spaces where there is a good potential to grow in the near future.

Investing in companies that are trading at expensive valuations might give a lower safety of margin upon a broader market correction. And to some of your surprise, there are still a few stocks that are trading at a very low valuation. In that vein, here’s a list of 2 profitable Maharatna mid-cap counters that are trading at the lowest TTM/PE.

Oil India Limited

Oil India (NS:) is a Maharatna oil and gas exploration company with a market capitalization of INR 30,656 crore, the second biggest of its kind in the country. Domestic credit rating agencies – CARE Ratings (NS:) and CRISIL (NS:) have given their highest AAA ratings to the company which denotes the robust financial stability of Oil India.

The company has been growing its net income at a yearly rate of 26.1% over the last 5 years and posted a record-high profit of INR 8,728.59 crore in FY23. However, despite a decline in Q1 FY24 earnings, the TTM P/E ratio is still at a mere 4.17, making it currently the cheapest mid-cap Maharatna stock. It is also trading at a strong dividend yield of 7.07%.

Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation (NS:) is a Maharatna oil refining and marketing company with a market capitalization of INR 37,095 crore. It has over 20,361 retail outlets in the country along with 52 aviation fuel stations.

The company posted a strong net income in Q1 FY24, of INR 6,765.5 crore which was 87.5% higher than the preceding quarter and was a turnaround figure from the Q1 FY23 loss of INR 8,557.12 crore. This good result was primarily due to lower international oil prices and therefore the same results might not materialize in this quarter due to a mean reversion in oil prices. This good quarter has lowered the TTM P/E ratio to 4.45, making it the second-cheapest Maharatna company in the mid-cap space.

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