Research Head (MONEY MAKER RESEARCH & INVESTMENT ADVISOR PVT LTD) is having a view that one can go long in Megh organic & Deepak Fertilisers
Meghmani Organics View for Tomorrow
“Meghmani Organics is looking strong on Daily Charts. I would recommend buying above Rs 76 & expecting it to test Rs 79 level in upcoming week; keeping stop loss at Rs 72.”
Meghmani Organics posted a strong revenue growth in Q1 and margins were aided by agro-chemical business. The company is currently operating at 80 percent capacity and will look to increase capacity going forward.
Deepak fertilisers View for Tomorrow
I would also recommend a buy rating in Deepak fertilizers above Rs 390 with a target of Rs 400 with strict stop loss of 378.”
I expect earnings visibility to enhance, balance sheet and return ratios to improve (RoCE of ~17% by FY19 from ~10% in FY17) following improvement in fertiliser business.