Fine Organic - Medium-Term Outlook Continues To Remain Gloomy: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The long-term prospects for Fine Organic Industries Ltd. remain robust, as the company operates within the oleochemicals industry and has consistently driven growth through research and development innovations over the years. However, we anticipate that its performance may be adversely affected in the near-to-medium term due to the following:longer-than-expected delays in the commissioning of new capacities for expansion,existing plants operating at optimum utilization with no potential of debottlenecking, and further delays in the commencement of commercial supplies from the Thailand joint venture..We estimate a compounded Ebitda/profit after tax decline of 1% each over FY24-26, with margin in the range of 21-22% during the same period. Fine Organic is currently trading at ~44 times FY26E EPS and ~30 times FY26E EV/Ebitda. Valuations appear expensive for a company that is going to experience a YoY earnings decline for the next two years (-1%/-2% in FY25/26). We reiterate our Sell rating on the stock with a target price of Rs 4,095..Click on the attachment to read the full report:.Tega Industries - Making A Mark On The Global Stage: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Fine Organic - Medium-Term Outlook Continues To Remain Gloomy: Motilal Oswal

The brokerage reiterates its 'Sell' rating on the stock with a target price of Rs 4,095.

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Fine Organic - Medium-Term Outlook Continues To Remain Gloomy: Motilal Oswal

The brokerage reiterates its 'Sell' rating on the stock with a target price of Rs 4,095.

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