As the rising volatility continues to grip the headline indices, domestic brokerage firm SMC Global Securities has suggested four stocks- SBI Card & Payment Services Ltd, Narayana Hrudayalaya, Healthcare Global Enterprises Ltd (HCG) and Federal Bank Ltd - to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their sound technical parameters, while the latter two appear to be solid on the fundamental parameters. Here's what the brokerage has to say about these counters:
SBI Card & Payment Services | Buy | Target Price: Rs 880-890 | Stop Loss: Rs 720
SBI Cards has been trading under pressure since past few months as stock marked its 52-week low of Rs 647.95 in the month of June. However, a sharp recovery has been witnessed into the prices thereon as once again momentum seen picking up above the 200 days exponential moving average on daily charts last week. Technically stock has given a breakout above the falling trend line of long-term bearish channel with signs of potential reversal hereon. Therefore, one can buy the stock on dips in the range of Rs Rs 785-780 for the upside target of Rs 880-890 levels with stop loss below Rs 720 levels.
Federal Bank | Buy | Target Price: Rs 216 | Upside: 18%
The Federal Bank's asset quality has improved in Q1FY25. The gross NPA improved to 2.11 per cent as of June 30, 2024. The NIIs increased 19 per cent YoY to Rs 2,291.98 crore, while NIMs remained stable at 3.16 per cent. According to the management of the bank, it is the strongest quarter with very good growth across all key parameters. Strong business momentum has aided meaningful gains in market share. Asset quality of the bank has been resilient and demonstrates the underwriting, monitoring and collection capabilities of the Bank. As per the management, the bank has reported strong broad based credit growth in Q1FY25, along with the overall costs being well managed. The bank is comfortably capitalized and liquidity is also supported by a healthy retail deposit base. All these are to benefit the bank to achieve higher credit growth and margin improvement going forward. Thus, it is expected that the stock will see a price target of Rs 216 in 8 to 10 months' time.
Narayana Hrudayalaya | Buy | Target Price: Rs 1,600-1,630 | Stop Loss: Rs 1,200
Narayana Hrudayalaya has been consolidating in a broader range of Rs 1,170-1,320 on short term charts while broader trend remains intact with a bullish move as stock can be seen holding well above its 200 days exponential moving average on daily charts. Last week a fresh breakout was observed on charts above the key resistance level of Rs 1,320 after a phase of prolonged consolidation of more than six months. The momentum is supported by a substantial increase in trading volume, suggesting the potential for further price gains from hereon. Therefore, one can buy the stock in range of Rs 1,345-1,325 for the upside target of Rs 1,600-1,630 levels with stop loss below Rs 1,200 levels.
Healthcare Global Enterprises | Buy | Target Price: Rs 448 | Upside: 11%
Bengaluru-based Healthcare Global Enterprises (HCG) is the largest provider of cancer care in India. Through its network of 22 comprehensive cancer centers across India and Africa, HCG has brought advanced cancer care to the doorstep of millions of people. HCG’s comprehensive cancer centers provide expertise and advanced technologies for the effective diagnosis and treatment of cancer under one roof. Under the 'Milann' brand, HCG operates 7 fertility centers. According to the management of the company, consistent revenue growth is driven by volume increases across modalities and enhanced operational performance, supported by the strong results of its established centers and the progress in its emerging centers. The company has been diligently working to turnaround operations at its emerging centers, and its Kolkata center has shown promising growth and is now contributing to its overall EBITDA. The company is confident that the emerging centers will see revenue growth and margin expansion over the next 12 months. Thus, it is expected that the stock will see a price target of Rs 448 in 8 to 10 months’ time.