Mahanagar Gas, Deep Industries: Here's what Avinash Gorakshakar of ProfitMart says on these 2 stocks

Avinash Gorakshakar, Director of Research at ProfitMart Securities, said natural gas distribution firm Mahanagar Gas Ltd (MGL) and energy industry company Deep Industries could be two long-term fundamental bets. Gorakshakar on Friday told BT TV that MGL posted strong numbers in the first quarter of the current financial year (Q1 FY24). The company's operating EBITDA almost doubled. "Buy at current levels for a target price of Rs 1,500 in the next 12-15 months," he suggested.

Consolidated net profit of the city gas distribution company stood at Rs 368.40 crore in Q1 FY24, compared to Rs 185 crore in the year-ago period. Sequentially, net profit came at Rs 269 crore in the quarter ended March 31 (Q4 FY23). The scrip was last seen trading 1.57 per cent lower at Rs 1,104.10.

The other stock which the market expert picked was Deep Industries. He said the company recorded solid Q1 FY24 numbers with a strong order book and no debt. Investors can buy for target price of Rs 330-335 over the next 12-15 months, Gorakshakar stated.

The company has posted a net profit of Rs 31 crore in Q1 FY24 as against Rs 19 crore in the corresponding period last year. The stock touched its 52-week high of Rs 242.25 today.

Meanwhile, Indian equity benchmarks returned to the positive territory today, snapping their three-day fall. On the global front, Asian equities traded higher, while Wall Street equities closed marginally lower overnight.

Back home, foreign institutional investors (FIIs) sold Rs 317 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 1,729 crore of equities, as per provisional NSE data.

12 out of the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty IT, Nifty Consumer Durables and Nifty Pharma were outperforming the NSE platform by rising as much as 1.62 per cent, 1.30 per cent and 0.93 per cent, respectively.

On the stock-specific front, Cipla was the top gainer in the Nifty pack as the stock jumped 5.33 per cent to trade at Rs 1,228. Wipro, HCL Tech, LTI Mindtree and Tech Mahindra rose up to 2.15 per cent.

In contrast, Bajaj Auto, Hero MotoCorp, PowerGrid, BPCL and Hindustan Unilever were among the top laggards.

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