Suryaa Business Desk: Following the release of second-quarter (Q2) financial results, brokerage firm Motilal Oswal Financial Services has issued an analytical report reviewing the performance of Mahanagar Gas Limited (MGL) and Fine Organic Industries. The firm has established new target prices and ratings for both companies.
Regarding Mahanagar Gas Limited, the brokerage maintained a 'Buy' rating. Motilal Oswal noted that while Q2 margins faced short-term pressure due to increased input gas costs and reduced APM gas allocations, the company's long-term business growth remains solid. The report cited the increasing number of CNG vehicles, the expansion of PNG connections, and demand from new geographical areas as factors supporting volume growth. The brokerage considers the current valuations attractive.
For Fine Organic Industries, the brokerage assessed performance in the context of international supply chain challenges, raw material price fluctuations, and mixed demand in export markets. While acknowledging the company's net debt-free balance sheet and client network, the brokerage revised its target price, citing the potential impact of global market volatility on margins in the short term.
Brokerage experts suggest that investors should make portfolio decisions based on company fundamentals and volume growth amidst prevailing inflationary conditions and fluctuations in oil and gas prices.