GAIL share price climbs almost 2%; should you buy the stock after Q2 results?

livemint.com:

BSE on Wednesday (November 1), a day after the company reported its Q2FY24 earnings. GAIL share price opened at ₹120.65 against the previous close of ₹119.55 and rose about 1.6 per cent to the level of ₹121.50. The stock, however, cooled off quickly and traded 0.71 per cent higher at ₹120.40 around 9:20 am in a weak market.

GAIL share price has gained about 32 per cent in the last one year, significantly outperforming the equity benchmark Sensex which has gained just over 4 per cent in the same period. GAIL (India) on Tuesday reported a 70.3 per cent jump in its September quarter standalone net profit at ₹2,404.89 crore from ₹1,412 crore in the previous quarter, as Mint reported earlier. The company’s standalone revenue from operations in the second quarter of FY24 declined 1.25 per cent to ₹31,822.62 crore from ₹32,227.47 crore in the first quarter.

The stock closed 0.76 per cent higher on Tuesday. Also Read: GAIL India Q2 Results: Net profit jumps 70% to ₹2,405 crore; revenue dips 1.3% QoQ (Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Most brokerage firms have retained their previous views on the stock after GAIL's Q2 results.

Brokerage firm Motilal Oswal Financial Servicesmaintained a buy call on GAIL stock with a target price of ₹140. Motilal Oswal pointed out that GAIL reported an EBITDA of ₹3,490 crore in Q2FY24, 54 per cent above the brokerage firm's estimate of ₹2,270 crore. It was driven by a stronger-than-expected performance in the gas transmission, trading and petrochemicals segments.