Amid the rising selling pressure in the Indian equity markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Eicher Motors Ltd, Tata Consumer Products Ltd, Biocon Ltd and Chambal Fertilisers & Chemicals Ltd- to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their strong technical charts, while the latter two appear to be strong based on their sound fundamentals. Here's what the brokerage has to say about these counters:
Eicher Motors | Buy | Target Price: Rs 5,660-5,700 | Stop Loss: Rs 4,900
Eicher Motors has been trading within a well-defined channel, and a breakout has occurred on the daily chart, indicating a significant shift in its price momentum. After the breakout, the stock retested the breakout level and successfully rebounded, showing resilience and confirming the breakout. During the initial breakout, there was a noticeable spike in volume. Currently, the volume is once again beginning to rise, signaling the possibility of a continuation of the bullish trend. Therefore, one can accumulate the stock in a range of Rs 5,200-5,220 for the upside target of Rs 5,660-5,700 levels with stop loss below Rs 4,900 levels.
Biocon | Buy | Target Price: Rs 436 | Upside: 12%
Biocon is engaged in the production of therapies for chronic conditions like diabetes, cancer and autoimmune. It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as generic formulations in the US, Europe & key emerging markets. It also has a pipeline of promising novel assets in immunotherapy under development. Biocon remains focused on consolidating the business and leveraging its vertically integrated model and expanding global footprint to drive value for the organization. It is focused on delivering affordable healthcare solutions and expanding its global footprint. It has a strong pipeline of products in areas like oncology, diabetes, and immunology, and is investing in innovative technologies. Despite challenges in its Generics business due to pricing pressures, Biocon expects growth from new product launches and ongoing cost improvement initiatives. Thus, it is expected that the stock may see a price target of Rs 436 in 8 to 10 months.
Tata Consumer Products | Buy | Target Price: Rs 1,095-1,110 | Stop Loss: Rs 920
Tata Consumer has shown a notable recovery after hitting its 52-week low in December 2024, showing signs of investor interest. From a technical analysis perspective, the stock has formed a rounding bottom pattern, which is a classic reversal pattern that suggests the end of a bearish trend and the potential beginning of a bullish phase. Therefore, one can accumulate the stock in range of 990-995 for the upside target of Rs 1,095-1,110 levels with stop loss below Rs 920 levels.
Chambal Fertilisers & Chemicals | Buy | Target Price: Rs 585 | Upside: 18%
Chambal Fertilisers manufacture ammonia, urea, pesticides and other products for farming and other agricultural applications. It produces 12 per cent of the country’s total urea. Its three state-of-the-art nitrogenous fertilizer plants, located in Gadepan, Kota have a combined annual production capacity of around 3.4 million MT. It caters to farmers across 14 states in India, through its flagship 'Uttam' brand, the company offers a one-stop solution for farming needs, providing urea, DAP, MOP, NPK fertilizers, crop protection chemicals, and specialty nutrients. All its urea manufacturing units are operating at optimal capacity. Its crop protection chemicals & specialty nutrients business is growing very fast, helped by new product launches. Its focus on introducing improved products and widening of its offerings in its channels indicates future growth visibility. Thus, it is expected that the stock may see a price target of Rs 585 in 8 to 10 month.